Are Shipping and Delivery Charges and Drop Shipping Taxable?
http://www.windsorgov.com/DocumentView.aspx?DID=1163 Sometimes it becomes confusing when a business is trying to determine if shipping charges are taxable or exempt from sales tax on a sale. The charge can be either taxable or exempt from tax, depending on who assumes responsibility for loss or damage during shipping. Generally, when the business assumes responsibility for the property loss or damage during shipping, then shipping charges are taxable. If the buyer or common carrier is assuming the responsibility for property loss or damage, then it is not taxable. TERMINOLOGY USED IN THIS FYI: Shipping Charges can be referred to as “shipping”, “shipping & handling”, “freight”, “delivery”, or “transportation fees”. Shipping includes common carrier freight and transportation or delivery in the vehicle of the seller and drop shipping. Property is referring to “tangible personal property” or “merchandise” or “inventory” that is sold in a retail transaction. Seller is referring to “the comp
