Shipping and handling charges are taxable if the charges they are associated with the sale of taxable goods or service.
To illustrate, let’s say you sell some furniture in the amount of $500 with a $40 delivery charge and collect sales tax on each sale. Because the sale is taxable, you must also collect sales tax on the $40 delivery charge.
If the customer gives you a resale certificate or if they are an exempt organization (government or charitable organization), then no tax is collected on either amount.
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