: FYI NY SALES TAX UPDATE - INCLUDES SHIPPING

 

You might want to pass this on to other distributors……………

If you list shipping shipping charges separately, they are not taxable in MA – only the product.  NY states below how the tax is calculated and it does include shipping charges.

New York — Sales And Use Tax — Discounts, trade-ins, and additional charges discussed.
The Department of Taxation and Finance has updated the sales tax bulletin (TB-ST-860) explaining what types of charges are included in the taxable receipt, how discounts affect the taxable receipt, and how to compute the taxable receipt on barters and trade-ins. The taxable receipt is the taxable amount of a vendors charges to customers. Charges included in the taxable receipt are: business operating expenses passed through to customers, shipping, handling, or delivery charges, and certain excise taxes, but excluding motor fuel and diesel motor fuel excise taxes. Interest, service fees, or late fees for extending credit to customers and deposits are not included in the taxable receipt. The taxable receipt may be reduced by trade and volume discounts and trade-ins, but is not reduced by early payment discounts and manufacturer's discounts. In a trade, barter, or exchange, the taxable receipt is the value of the items or services given in trade. ( New York Sales Tax Bulletin TB-ST-860, 06/16/2011 .)

 

 

 

nyJudith M. Trumble, EA

65 Crane Avenue

Dalton, MA 01226

Phone: 413-684-0438

Fax: 866-303-7751

E-Mail: Judith-tax@Berkshire.rr.com

 

Pursuant to U.S. Treasury Department circular 230, unless we expressly state otherwise, any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties or (ii) promoting, marketing or recommending to another party any matter(s) addressed herein.

 

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