How to Respond to Tax on Shipping and Handling Charges?

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Discussion Overview

The thread discusses participants' experiences and thoughts on how to respond to customer inquiries regarding tax on shipping and handling charges associated with Pampered Chef orders. Participants share various approaches to addressing customer concerns and clarify the tax implications based on state laws.

Discussion Character

  • Anecdotal
  • Opinion-based
  • Technical explanation

Main Points Raised

  • One participant, identifying as a consultant, mentions that they explain to guests that state law requires tax on shipping, which helps alleviate concerns.
  • Another participant shares their experience of providing a receipt to clarify that the tax is mandated by the state, not imposed by the consultant.
  • Several users note that shipping and handling is taxable in most states, with exceptions listed, and emphasize the importance of understanding local tax laws.
  • One participant expresses that they often "blame the state" when questioned about tax, which seems to satisfy customers.
  • Another participant recounts a situation where they provided specific legal references to a customer in Florida, which resolved the issue.
  • Some participants discuss the varying tax practices in different states, with one noting that in Ohio, Pampered Chef does not charge tax on shipping, unlike other companies.
  • One participant expresses concern about a customer's tone in their inquiry, suggesting it may have been sarcastic.

Areas of Agreement / Disagreement

Views differ regarding the necessity of providing detailed information about state tax laws, with some participants suggesting it may overwhelm customers while others find it helpful. No clear consensus emerges on the best approach to take when responding to customer inquiries about shipping and handling tax.

Contextual Notes

Participants share personal experiences and strategies for addressing customer questions about tax on shipping and handling, reflecting a range of practices based on their respective states' tax regulations.

Who May Find This Useful

Consultants looking for insights on handling customer inquiries about tax on shipping and handling charges may find the shared experiences and strategies beneficial.

erinyourpclady
erinyourpclady
Gold Member
Messages
1,390
I received this from one of my hosts...my Momma to be exact.....fro one of her friends


"I was making out my order for your lovely daughter and stopped before finalizing it because she is charging tax on the shipping and handling. How come? I understand the tax on the products, but I have never been charged taxes on the shipping and handling before. Is this normal? Let me know"

I am a loss on how to respond....maybe I am just having a brain fart but the words are not coming.Can y'all help?
 
When guests question tax on shipping, I let them know that the state requires tax on shipping. Then they are okay with it, because we tax everything here in Washington. :)
 
I would let your mom have a copy of the receipt & show that it is from the state & Pampered Chef. It's not that YOU are charging her tax, THEY are! :)
 
Shipping and handling is taxable in every state except: AK, DC, DE, IA, ID, IL, MA, MT, NH, OH, OK, OR, UT & WY.

If she lives in one of those states AND is having the products shipped direct, she will not have to pay tax on the s & h. Even if she does live in one of those states but is having the products shipped to the host, who does not live in one of those states, the s & h is taxable. If everyone lives in a non-taxable s & h state, then no problem.

In my city/state, TX, the tax is only $.33 on the $4.00....and we have what I think is a high tax rate!
 
  • Thread starter
  • #5
My DH says is she really complaining about a buck......she would be paying tax on direct shipping so it could be much more..I don't know. The guest is in Colorado.
 
The shipping and handling is taxed (in some states) because it includes "handling".
 
So, based on this S/H is taxed in YOUR state AND hers.Politely respond and emphasize that it is HER state laws requiring that you charge her tax on the S/H.
 
Yeah, what Janet said! I always tell people, "and Washington charges tax on it's S&H.... it's not a PC thing, it's a Washington thing!;) People usually don't question it farther from there!
 
MissChef said:
Yeah, what Janet said! I always tell people, "and Washington charges tax on it's S&H.... it's not a PC thing, it's a Washington thing!;) People usually don't question it farther from there!
Click to expand...

I get the same response when I tell them it is a Washington thing also. :)
 
  • Thread starter
  • #10
Ok....so this is the response I have written....

First of all thank you so much for placing an order with my mom’s catalog show. She is very excited to be helping me out and I so appreciate that! She will also benefit from your order and for that I am so excited for her!
In regards to your question about the tax on shipping and handling. Certain states require that items offered via direct sales are taxed on shipping and handling. In fact most states with the exception of the following…AK, DC, DE, IA, ID, IL, MA, MT, NH, OH, OK, OR, UT & WY; require that items as well as shipping and handling are taxed. While I personally would prefer to not have to charge on shipping and handling, The Pampereed Chef® and I must comply with the lasws of all the states. I hope that this clears up any confusion but if you do still have questions, I would be more then happy to investigate further.


Well...what do you think?
 
Looks good to me. Although if she's complaining, she might just keep on complaining.
 
Sounds good to me may I "use" it also????
 
Sounds great Erin.
 
Looks good, except I don't think you need to give her the list of states. That's too much information that she doesn't need.
 
  • Thread starter
  • #15
Ok...I am sending it out!
 
Sounds perfect!

I always 'blame the state' too when people question it at my shows. Once you tell them it is not under PC's control they are usually fine with it.
 
  • Thread starter
  • #17
DebbieJ said:
Looks good, except I don't think you need to give her the list of states. That's too much information that she doesn't need.
Click to expand...

good thought....noted.
 
I want to know how she meant "lovely daughter" sounds sarcastic to me.
 
  • Thread starter
  • #19
vwpamperedchef said:
I want to know how she meant "lovely daughter" sounds sarcastic to me.
Click to expand...

Nah...she really means lovely daughter...she is family! :D
 
well thats good to hear---!
 
Looks great Erin, I like how you worded it! Especially this part:


While I personally would prefer to not have to charge on shipping and handling, The Pampereed Chef® and I must comply with the lasws of all the states.

Sounds very professional!!!

Good Job!;):)
 
oops, laws is spelled wrong! I hope you caught that before you sent it out.
 
  • Thread starter
  • #23
pamperedlinda said:
oops, laws is spelled wrong! I hope you caught that before you sent it out.
Click to expand...

I did......my typing today is suffering do the fact that I was up off and on all night and at the Drs today....my youngest DD has strep!:yuck:
 
response sounds good Erin, some people just aren't happy unless they are complaining.
I am in Ohio so we don't have to charge tax on D&H. but when I do shows in KY, I do and I have forgotten and brought the wrong order forms from CC before.
 
I like your response Erin. If I have a guest that really questions the tax on shipping, I do remind them that is a state requirement and then I offer to pay the $0.30 and that kind of makes them realize that it really isn't that much :)
 
When I had a customer who pushed the tax issue - wanted to know under what law, statute, etc. in Florida - I contacted HO and they put me in touch with JoAnn Alfaro ([email protected]) who provided me with the exact cite & quote from the Florida Administrative Code. I provided that info to the customer and no further complaint was heard.

I now keep a copy of that email in my calendar so if anyone asks again, I have a handy reference and don't have to stumble and bumble along about it.
 
Would you mind sharing that email? I am in Florida as well.
 
Sure, let me see if I can find it - not sure it I still have it b/c it's from April.

In any event, the cite is Rule 12A-1.045 (3) (a) Florida Administrative Code
 
Re: How to respond to this.... FloridaHere you go


As stated for Florida

Rule 12A-1.045, Florida Administrative Code states:

"(3)(a) Where the seller agrees to deliver tangible personal property to some designed place and the puncher cannot elect to avoid the charge for transportation service, the charge for transportation is subject to tax, even if separately stated on an invoice or bill of sale. "

Since as a consultant you can not avoid shipping charges stated on the sales order form. therefore sales tax MUST be collected on the total sale, which includes 'SHIPPING AND HANDLING"




Thank you,

JoAnn Alfaro

630-261-4077


I can forward the email to as well if you want it. Where in FL are you?
 
You guys are going to laugh, but I live in OH and everyone here complains because we (PC) does NOT charge tax on shipping and handling! Every other direct sales company here in OH taxes s&H and I have no idea why the difference, but do you ever wonder...

Maybe some people will always complain about SOMETHING??? LOL
 

Frequently Asked Questions

Do I need to charge sales tax on shipping and handling charges for Pampered Chef products?

Whether you need to charge sales tax on shipping and handling charges depends on the tax laws of your state. In some states, shipping charges are taxable if they are part of the sale, while in others, they are not. It's important to check your state's regulations to determine the correct approach.

How should I handle tax on shipping charges if I offer free shipping?

If you offer free shipping, you generally do not need to charge sales tax on the shipping charges, as there are no actual shipping fees being collected. However, ensure that your pricing structure complies with your state’s tax laws regarding free shipping promotions.

What if I charge a flat rate for shipping? Is that taxable?

If you charge a flat rate for shipping, it may be subject to sales tax depending on your state's regulations. In many cases, if the shipping charge is mandatory and part of the sale, it is taxable. Always verify with your state's tax authority for specific guidelines.

How do I report sales tax collected on shipping and handling?

Sales tax collected on shipping and handling should be reported in the same manner as sales tax on products sold. When filing your sales tax return, include the total amount of sales tax collected from both product sales and shipping charges, following your state's reporting requirements.

Can I separate shipping charges from the product price to avoid tax?

Separating shipping charges from the product price may not exempt you from sales tax if the shipping is deemed part of the sale. Many states require that all charges related to the sale, including shipping, be taxed if they are mandatory. Consult your state's tax guidelines for the best practices in your situation.

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