Is Shipping Taxable in Rhode Island?
by January 21, 2021
Ever been confused by sales tax? Don’t worry, you are not alone. It can be difficult subject to navigate, especially because each state generates their own legislation to deal with it. Subjects like whether to charge sales tax on shipping and handling can be very trying. Let’s see what the state of Rhode Island has on file for that very subject.
Is Shipping Taxable in Rhode Island?
Here is what the State of Rhode Island Division of Taxation says:
You will most likely need to charge sales tax on shipping charges in Rhode Island. Rhode Island considers shipping charges a part of the sale price of the item, so if the item is taxable so is shipping.
On the other hand, if the item isn’t taxable, then don’t charge sales tax on the shipping charges.
Final Ruling
If the item you are selling is taxable, then charge sales tax on the shipping charges to customers in Rhode Island. If the item isn’t taxable, don’t charge sales tax on the shipping charges.
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.
