Legal Question in Business Law in California

should I charge tax on shipping and handling for online sales based in california

Asked on 2/06/10, 6:55 am

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

You must always collect sales tax on "handling" or combined shipping and handling. You can legally avoid collecting and remitting sales tax on "shipping" when and only when you use a common carrier (like the Post Office or FedEx) and separately invoice and account for their actual charges. If you deliver via company truck, not a common carrier, tax must be charged on the whole bill. Check the board of equalization's Web site for particulars.

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Answered on 2/11/10, 9:11 am

Scott Linden Scott H. Linden, Esq.

Additionally, the tax should be collected within the state that you reside. You are not necessarily required to collect tax from States outside of where you maintain an "office".

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Answered on 2/11/10, 3:08 pm

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