Does TaxCloud calculate sales tax on shipping?

Yes. Shipping charges are subject to sales tax in many states. If the order is being shipped to a state that taxes shipping, TaxCloud calculates and applies the appropriate sales tax.

Please be aware that TaxCloud provides two Taxability Information Codes (TICs) related to transportation, shipping, postage and similar charges.

Please select Postage/Shipping TIC 11010 if you are charging your customer your actual shipping cost as can be demonstrated by your invoice from your shipping provider.

If you offer "Flat Rate Shipping" (regardless of your actual shipping costs), or if you markup your shipping charges (charging your customers more than your actual shipping cost), you should use Shipping & Handling TIC 11000, available in the Administrative TIC category.

For a complete list of TaxCloud's taxability codes, please visit https://taxcloud.com/tic

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Comments

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    Acurtis

    What if we do not charge our customers tax on shipping even if we are in a state the does require it, but we are exempt from collecting it? How do we stop this from happening?