I on occassion have signs that ship out. Am I supposed to charge sales tax?
Or how about this scenario? I order say digital prints from an out-of-state vendor. I sold these to my customer. Am I supposed to charge them sales tax on the shipping of the prints?
I know it's confusing. Just curious what everyone else does.
[ June 17, 2003, 11:15 AM: Message edited by: Amy Brown ]
Posted by Wayne Webb (Member # 1124) on :
Amy, If you are shipping something to within the state of Florida, yes you are supposed to charge sales tax on the merchandise. If shipping to outside the state, no. I don't believe you are supposed to charge the customer sales tax on the freight.
Also, If you BUY something from out of state and don't pay sales tax, you are supposed to pay the state of Florida the tax. If you do pay tax to the other state and it is ,say, 2% lower than Florida's tax, you are supposed to pay the difference to Florida.
Posted by Amy Brown (Member # 1963) on :
Hey Wayne,
I think I said this wrong. You don't charge tax on services, do you? For example shipping, logo design, etc. Or do you?
Whether in or out of state, isn't UPS or who ever already putting the tax in there or am I supposed to tax it again? Does that make sense?
Thanks again.
I
Posted by Bruce Evans (Member # 44) on :
In California, we don't tax shipping. We tax the product then shipping is added to it at that point. I would venture to say that it's the same in every state. Assuming that your charging actual shipping costs. Now shipping & "handling", I'm not sure on.
Posted by Wayne Webb (Member # 1124) on :
No, like I said, I don't believe you are supposed to charge tax on the freight(or shipping)...regardless of it's origin or destination.
But you do charge tax on the merchandise, sign whatever: But only on the merchandise shipped to within the sate of Florida.
Posted by Mike Pipes (Member # 1573) on :
No, you don't charge a tax on the shipping costs.
When you contract out services like digital printing, unless you itemize the "incoming" shipping cost on the invoice (versus "including" shipping cost as part of the total price) you will be charging taxes on the shipping.
Posted by Tim Whitcher (Member # 685) on :
If you live in Michigan, yes, you have to charge sales tax on shipping. Such as in the case of selling a set of Gemini changeable letters to a customer, we sell the letters at the catalog list price, plus charge for the shipping from Gemini. By Michigan sales tax law, we must charge the customer tax on the shipping. All retailers are required to do it. On off the shelf items, they just factor the shipping (or freight) into the final price to the customer, and charge sales tax on the final price.
Posted by goddinfla (Member # 1502) on :
Just a comment here, you don't "charge" tax you just collect it for the state. In Florida you don't pay tax on anything you don't actually give to the customer. Material you pay tax on, sandpaper you don't. If you are being reimbursed for shipping it would depend if you itemize it out separately. If it's part of the overall price and you include tax on the whole job then fine. If you separate it out and just get reimbursed then don't. If in doubt collect the tax, the state won't mind a bit.
