Related Information

Question: Is sales tax due on delivery and freight charges when I purchase an item and have it delivered?
Delivery and freight charges are generally not taxable so long as the charges are both separable from the purchase and separately stated on the customer invoice. The charges are considered separable from the purchase if they are for service performed after the property is offered for sale and the seller allows the buyer to use the seller's transportation service or to use alternative transportation service, including but not limited to the buyer picking up or taking the property from the seller's location.

Taxable delivery and freight charges related to tax exempt sales (tax exempt item, sale to tax exempt charity, shipping out of state, etc.) are not subject to sales tax because the delivery charges are considered part of the exempt sales.

For Further Information:

FYI Sales 29

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