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skyhigh007 · 03-10-2008, 05:24 PM

Hi

I have a question about the best practice on charging sales tax on the goods that im selling online. I have notice that some seller charge tax on the total amount of the good, plus shipping and handling. Others, they charge tax on the good itself. So whats the legal way of charging tax?

Thanks

ADVERTISE HERE! · 03-10-2008, 05:25 PM

Only on the goods.

skyhigh007 · 03-10-2008, 06:03 PM

Is there any possible way where you can charge tax with the goods and shipping& handling ? I just want to make sure if its allow

ADVERTISE HERE! · 03-10-2008, 06:08 PM

Just to make extra money? That's what the "handling" part of the "S & H" is for.

JLeezer · 03-10-2008, 06:11 PM

Actually, I believe that whether you are to charge tax on the shipping & handling is defined on a state by state basis in their sales tax codes. You should definitely discuss this with a tax attorney in your area.

capforge · 03-10-2008, 08:04 PM

Quote:

Originally Posted by jmenq2

Just to make extra money? That's what the "handling" part of the "S & H" is for.

Extra for who? Unless you are collecting it and not reporting it, the extra would go to the state. But charging more money and not getting to keep it doesn't make much sense- wouldn't you want to minimize the amount your customers are going to have to pay of money you don't get to keep?