Tuesday, February 28, 2006

FAQ: Is postage taxable?

One of the questions I've gotten a couple of times in recent days is whether or not "postage" is taxable. I think people are getting hung up on the fact that "postage" seems protected somehow. But think of it this way. It's just a delivery charge. So the real question is whether or not delivery charges are taxable in your state.

I had a question today from a seminar participant who was being charged tax on 1099's that a printer was mailing to her vendors. He was charging tax on the postage. In her state, delivery charges are taxable. And this postage was essentially the delivery charge for shipping product produced by the vendor to the customer's accounts.

Logically, this sounds like it's taxable to me.

Remember, the issues are:

NOT that it's postage.

ARE delivery charges by the vendor taxable in the state at issue?

Sales Tax Guy
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