Last updated July 14, 2017
There are a million questions being asked about sales tax at any given time. It can be one of the most trying (and tiring) subjects for small business owners, especially the rules on sales tax vary from state to state. Then when you get drill down to specific questions, like whether to charge sales tax on shipping, it can be exhausting. Let’s take a look at how the great state of Virginia answers this question for its small business owners.
Is Shipping Taxable in Virginia?
The Virginia Department of Taxation wants you to know this:
Well, that’s a little sly. So, in Virginia, if the shipping charges are separately stated on the invoice, they are not taxable. However, if you have a ‘shipping AND handling’ charge on the invoice, even if they are separately stated from the price of the goods, the shipping and handling charge is taxable.
So, if a seller doesn’t want to charge sales tax on shipping, they need to separately list it from every other charge including handling.
You will not charge sales tax on shipping in Virginia, but you will on handling.
Since a handling charge is taxable in Virginia, a seller must list the shipping charge separately from every other charge, including handling, if they want shipping to be non-taxable.
Still need answers? Jot those questions down in the comments.