Kansas Discusses Tax on Shipping Charges.

In a “Questions and Answers” release, the Kansas Department of Revenue discussed the allocation of tax on shipping charges. They stated that when a shipment contains both taxable and non-taxable goods, sales tax is only due on the shipping charges related to the taxable goods. A retailer can find the tax due using one of two methods. They can calculate the tax on by dividing the amount charged for the taxable goods by the total amount being charged for all the goods shipped or divide the weight of the taxable goods by the total shipment weight. Multiplying this percentage by the total shipping charge will determine the total taxable amount of the shipping charge. The invoice must contain all of the information needed to determine the allocation of the charges that was made by the seller. (Questions and Answers, Kansas Department of Revenue, December 10, 2004)

Posted on January 21, 2005