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Is Shipping in Nevada Taxable?
byJanuary 21, 2021
Last updated January 12, 2018
Confused if you’re supposed to charge sales tax on shipping costs? Confusingly, each state is completely different when it comes to this – some make you collect, others don’t, and others have incredibly complicated rules. This doesn’t help you run your business efficiently.
To help you out, we’re going state by state to find out what the different rules are. Today we’re going to cover Nevada.
Sales Tax on Shipping in Nevada?
As mentioned above, some states have made shipping sales tax collection simple by just not making sellers collect it. Luckily for you, Nevada is one of those states. From the Nevada Department of Taxation:
The Nevada Sales Tax FAQ also states that as of May 2009 transportation, shipping, and postage charges are not taxable if separately stated on the customer’s invoice.
Sounds simple, right? As long as you don’t include the cost of shipping in the cost of the item on the invoice or packing slip, you don’t have to collect sales tax on shipping.
However, be cautious if you lump other charges in with “delivery charges.” For example, if shipping and handling are combined, you are likely required to collect sales tax on the entire delivery charge. This publication from the Nevada Department of Revenue details delivery-related charges that may still be taxable.
Handling Nevada Shipping and Handling Sales Tax with TaxJar
The TaxJar app defaults to the most common Nevada scenario – that shipping and handling is non-taxable.However, if your business does charge sales tax on shipping, then TaxJar’s Shipping & Handling Override allows you to update that in your state tax settings. This will make the Nevada Expected Sales Tax Due Report more accurate. This will also tell the TaxJar API to charge sales tax on Nevada shipping.Learn more about how TaxJar treats shipping and handling here. And to learn more about TaxJar and get started, visit TaxJar.com/how-it-works.
Summary of Sales Tax on Shipping in Nevada
Basically, if you separately state the shipping AND handling on the invoice, you don’t have to collect sales tax on shipping costs. If you don’t separately state it, and just charge the customer one set total price, you’ll have to collect it. (This latter rule applies for FBA sellers and other sellers who use a fulfillment service and don’t separate out shipping and handling on the invoice.)
That’s it! Let’s all take a minute and appreciate that Nevada not only made sure to make the rules simple but to also wrote up a FAQ on sales tax questions. If you’ve dealt with sales tax at all you know how rare this is!
Please note: This blog is for informational purposes only. Be advised that sales tax rules and laws are subject to change at any time. For specific sales tax advice regarding your business, contact a tax advisor.