Is sales tax due on delivery and freight charges when I
purchase an item and have it delivered?
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
Back to Common
Back to Taxation Web site