Magazine article The CPA Journal

Sales Tax on Delivery Charges

Magazine article The CPA Journal

Sales Tax on Delivery Charges

Article excerpt

The New York sales tax law was recently amended last year to include shipping and delivery charges billed by the vendor as part of the taxable receipt subject to sales tax. Previously, these costs were excluded from taxation when separately stated on the invoice as the cost of transportation. The tax is imposed regardless of whether such charges are separately stated or whether the delivery is provided by the vendor or a third party. This change in law was effective September 1, 1991.

In January of this year, New York issued TSB-M-92(2)S which provides guidance regarding this new law. The following are the highlights of the bulletin:

TAXABLE SALES. On or after September 1, 1991, sales tax must be computed for taxable sales and services on any charge for transportation, delivery, shipping, postage, freight, handling, or similar charges. The vendor must collect the sales tax without regard to whether the vendor ships the property directly, or uses third parties (i.e. contract carrier, mail, or any other delivery service).

NONTAXABLE SALES. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.