2006-10-20 08:27:19 · 8 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
If you sell taxable goods to your customer and also charge the customer for freight, delivery or handling charges, then the charges are considered to be a necessary part or element of the sale and thus are taxable. It should be noted that freight is generally a nontaxable service. It only becomes taxable when you pay for the service and then charge your customer for it as part of the sale. Many states provide conditions under which you may do this and still exempt the tax on the freight charges. So how do you legally avoid tax on freight when your sale is taxable? Generally, you must consider the following conditions:
2006-10-20 08:28:48 · answer #1 · answered by club9670 2 · 1⤊ 0⤋
I'm sure each state differs, however, in GA it is legal to apply sales tax to freight charges.
2006-10-20 08:37:57 · answer #2 · answered by bugged 3 · 1⤊ 0⤋
I am assuming you are talking about a sales tax. The correct answer is "It depends". Most importantly, it depends on what State is charging the tax. While Income taxes are mostly Federal versions with State variations, Sales taxes are purely a factor of State law and Federal limitations (ie, limitations on taxation of interstate trade).
Traditionally, sales tax should only be applied to tangible goods, and not to services such as installation or freight.
A quick answer would be to call your State's sales tax authority. In my experience, no one ever calls them, so they're very friendly.
2006-10-20 15:30:45 · answer #3 · answered by tax_black_belt 2 · 0⤊ 0⤋
as long as you settle to purchase understanding all the charges, it extremely is criminal. no one can answer despite the fact that if it extremely is ideal to cost tax on the greater effective costs, that relies upon on the rustic/state tax requirement, and the character of the charges. the final public of your greater effective costs are transport, did you think of they could deliver the shoes for unfastened? that's the version between paying for in a save and on line. In a save, the transport is pay as you go.
2016-11-24 20:07:49 · answer #4 · answered by Anonymous · 0⤊ 0⤋
it is illegal to charge tax on freight charges due to the freight company already paid taxes to the government.
2006-10-20 08:39:14 · answer #5 · answered by Anonymous · 0⤊ 3⤋
Each state has different rules for what is taxable for sales tax purposes. You'd have to check for your state.
2006-10-21 19:51:18 · answer #6 · answered by Judy 7 · 0⤊ 0⤋
honey its legal to tax anything if the good old gov wants to tax it.
2006-10-20 08:36:10 · answer #7 · answered by roy40372 6 · 1⤊ 0⤋
i don't think so
2006-10-20 08:28:28 · answer #8 · answered by JUNONNKI 3 · 0⤊ 1⤋