Sales Tax: Collecting on Shipping Amounts

Tax FAQs | Tax Reports | Tax Overview

To collect sales tax on shipping amounts, set up a service item called "Shipping Charges" or similar and assign the appropriate tax code to it. List this item on sales receipts like any other item. To collect sales tax on shipping amounts, edit your tax location(s) and select the check box labeled Shipping to this location is taxable and specify the tax code that should be used for the shipping amount.

Sales tax will be calculated on the shipping amount and added to the sale according to the instructions specified for the tax code assigned.

Related Topics

Setting up sales tax

Using sales tax codes

Using sales tax locations

Assigning tax codes to items

Shipping information