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tax on shipping question

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9 Nov 2007, 8:50 PM
#1
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legris

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tax on shipping question

Hi,
My client had a sales tax audit and we need to change how the cart calculates tax on shipping.

Most of their products are not taxable, however she has 3 products that are.
When any of the taxable products are purchased then sales tax needs to be added on shipping charge as well.

However, the cart is adding tax on shipping whether they purchase a taxable product or not.

How do I fix this? I'm using the UPS Module only.

Thanks for your help.

RLeGris

9 Nov 2007, 11:18 PM
#2
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tshooters

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Re: tax on shipping question

If shipping is taxable, would it not be due whether the product bought is taxable or
not?

10 Nov 2007, 9:02 PM
#3
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legris

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Re: tax on shipping question

In Texas, Shipping and handling charges are taxable if the charges are associated with the sale of taxable goods or service. So if you are shipping non-taxable goods such as food, then the shipping is not taxable.

( http://www.window.state.tx.us/taxinfo/sales/faq_collect.html#collect8 )

So how do I get the shipping module for UPS to be compliant with this??

Thanks!

RLeGris