posted
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 ]
-------------------- Amy Brown Life Skills 101 Private Address Posts: 3502 | From: Lake Helen, FL, USA | Registered: Feb 2001
| IP: Logged |
posted
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.
-------------------- Wayne Webb Webb Signworks Chipley, FL 850.638.9329 wayne@webbsignworks.com Posts: 7405 | From: Chipley,Florida,United States | Registered: Oct 1999
| IP: Logged |
posted
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.
-------------------- Bruce Evans Crown Graphics Chino, CA graphics@westcoach.net Posts: 913 | From: Chino, CA | Registered: Nov 1998
| IP: Logged |
posted
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.
-------------------- "If I share all my wisdom I won't have any left for myself."
Mike Pipes stickerpimp.com Lake Havasu, AZ mike@stickerpimp.com Posts: 8746 | From: Lake Havasu, AZ USA | Registered: Jun 2000
| IP: Logged |
posted
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.
-------------------- Tim Whitcher Adrian, MI Posts: 1546 | From: Adrian, MI | Registered: Mar 1999
| IP: Logged |
posted
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.
-------------------- Dennis Goddard
Gibsonton Fl Posts: 1050 | From: Tampa Fl USA | Registered: Apr 2000
| IP: Logged |
Printer-friendly view of this topic