Under Tennessee law, “sales price” specifically includes delivery charges in the sales price of a transaction. When a seller adds delivery charges (e.g., shipping, freight, postage, handling, etc.) to an invoice, these charges are taxable if the transaction is taxable or exempt if the transaction is exempt.
Are shipping charges taxable for sales tax purposes?
- If an out-of-state customer purchases product from a business and hires a delivery company to take possession of the product at the business’ location and deliver the product to the customer, is the transaction subject to sales tax?
- Is a charge for labor subject to sales tax?
- When an item is purchased and the customer provides a coupon to the seller, is sales tax based on the item price before or after the coupon is applied?
- When may a business use a resale certificate?
- What are the reduced sales tax rates that apply to manufacturers?