The store issues the following bill to the customer: Appliance The department store delivers the appliance to the customer’s home and charges $20.00 for delivery. If a customer separately arranges and pays for delivery of a taxable item by a third party, the seller of the item will only collect sales tax on its charge (see Delivery-only services, below).Įxample: A customer purchases a clothes dryer (including a service contract) from a major department store chain that has its own delivery vehicles. When a taxable product or service is sold, any charges for shipping or delivery that the seller includes on the bill become part of the receipt subject to sales tax. The terms shipping and delivery also include charges identified by terms such as transportation, handling, or postage. Generally, charges for shipping or delivery that a seller includes on its bill are taxable if the product or service that is being shipped or delivered is taxable. This bulletin explains how sales and use taxes apply to shipping and delivery charges. Shipping and Delivery Charges Tax Bulletin ST-838 (TB-ST-838) Printer-Friendly Version (PDF) Issue Date: Introduction Metropolitan transportation mobility tax.
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