So you have sales tax nexus in Vermont and you’ve made a sales to a customer there. Should you charge sales tax on the shipping charges you charge to your customer? Let’s take a look.
Is Shipping Taxable in Vermont?
Here’s what Vermont’s tax code has to say about “delivery charges”:
To sum it up, delivery charges are considered part of the sale and are therefore taxable if the sale is taxable. If you happen to be selling a non-taxable item, then delivery charges are also not taxable. Vermont is a fairly straightforward state when it comes to shipping taxability. (Some other states? Not so much! You can find out more about shipping taxability here.)
If you sell a taxable item to a customer and also charge them delivery charges (shipping, etc.) then charge sales tax on the price of the item AND on the shipping charges.
If the item is tax exempt, then there’s no need to charge sales tax on the shipping charges.