So you have sales tax nexus in Wyoming 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 Wyoming?
Wyoming refers to items that sellers ship to customers as “outbound freight” but makes clear that this term covers “shipping charges,” “delivery charges,” or “shipping and handling charges.”
Here’s what the Wyoming Department of Revenue has to say about shipping taxability:
“…outbound freight is the freight associated with a retail sale and represents the cost a consumer incurs in order to get a product from the vendor to the delivery place of their choosing. Generally this freight is itemized by the seller on his invoice to the consumer and is dependent on the actual costs incurred (with or without markup) to transport the item to the delivery location. Both intrastate (in-state) and interstate (state-to-state) outbound freight is exempt from Wyoming sales tax provided it is separately stated and distinguishable from any taxable charges that may appear on the same invoice. To illustrate using the shampoo example above, presume the consumer purchases a bottle and requests it to be delivered to their hotel room, paying $0.25 Bulletin: Freight and Transportation Charges Revised August 1, 2014 Page 2 extra for delivery. If the vendor presents the invoice to the consumer as $1.70 for the shampoo and $0.25 for a separately stated delivery fee then only the $1.70 is subject to Wyoming sales tax. But if the vendor presents it as $1.95 for shampoo delivered then the full $1.95 is subject to Wyoming sales tax.”
What does this mean? Long story short, as long as you separately state the shipping charges on your invoice to your customers then you do not need to charge sales tax on those shipping charges.
You can read a lot more about shipping taxability in Wyoming , and find links to specific Wyoming state laws, in their publication Freight and Transportation Charges.
Wyoming Shipping Taxability Summary
As a seller, you will not have to charge sales tax on shipping and handling in Wyoming if those charges are listed separately on the invoice.