Tax Type
Retail Sales and Use Tax
Description
Shipping and handling charges
Topic
Taxability of Persons and Transactions
Date Issued
04-27-1989
April 27, 1989
Re: Request for Ruling: Sales and Use Tax
Dear***************
This will reply to your letter of April 6, 1989, in which you request a ruling on the application of the sales and use tax to "shipping and handling" charges separately stated on customer invoices.
The Virginia tax is computed based upon the "sales price" of an article. This term is defined in Va. Code §58.1-602(17) as "the total amount for which tangible personal property or services are sold, including any services that are a part of the sale," but excluding "transportation charges separately stated."
Virginia Regulation 630-10-107 defines "transportation charges" as:
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- charges for delivery from the seller to the purchaser, commonly known as "transportation-out," and include postage or common carrier charges. Transportation ... charges do not include charges from a manufacturer to a retailer's place of business relative to purchases for resale, nor do they include handling charges. Emphasis added
- charges for delivery from the seller to the purchaser, commonly known as "transportation-out," and include postage or common carrier charges. Transportation ... charges do not include charges from a manufacturer to a retailer's place of business relative to purchases for resale, nor do they include handling charges. Emphasis added
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner