Sales Tax Fundamentals
Get up to speed on the basics of sales tax
Is Shipping Taxable in Idaho?
byJanuary 21, 2021
Last updated July 14, 2017
Sales tax, man. Now that’s a confusing subject, especially when states each have a different set of rules for when it is applicable. One of the trickier issues is whether your state requires you to charge sales tax on shipping and handling. In this article, we will tackle this issue for folks in the Gem State.
Is Shipping in Idaho Taxable ?
Here is what the Idaho Department of Revenue says:
Thanks for all the examples, Idaho! It appears from the above that you will not pay sales tax on shipping and handling, as long as the charges are separately stated on the invoice. However, if you are a seller ordering an item for a buyer from another seller/manufacturer and the item ships to you first and then you ship it to the customer, the shipping and handling charges that you paid to have the item ship to you are taxable and are passed on to the buyer. See the example in the screenshot for further clarification.
You do not have to charge your customers sales tax on shipping and handling charges in Idaho if you do these two things:
- List the shipping and handling charges separately on the invoice.
- If ordering a product for a buyer from another seller, have that seller ship directly to the customer. This way the buyer won’t have to the pay the sales tax on the shipping and handling to you.
Handling Idaho Shipping and Handling Sales Tax with TaxJar
The TaxJar app defaults to the most common Idaho 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 Idaho Expected Sales Tax Due Report more accurate. This will also tell the TaxJar API to charge sales tax on Idaho 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.
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.