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.

merego said:
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.
Click to expand...


Wait a second??? We can buy different order forms-how? Please tell me how...They always send me the ones that have the sales tax listed appearing as though the customer has to pay it on the s&h... :confused:
 
chefliz said:
Wait a second??? We can buy different order forms-how? Please tell me how...They always send me the ones that have the sales tax listed appearing as though the customer has to pay it on the s&h... :confused:
Click to expand...

There are different outside order forms available on Consultant's Corner for download, not different sales receipts. The sales receipts are all the same. There are 3 different types of outside order forms - ones for states who tax S&H, one for states who don't, and one for states who have to charge the higher 15% S&H rate (non-contiguous states like Hawaii and Alaska).

Go to the bottom of the "Promotions and Programs" page on CC and you'll see it explained there. HTH!
 
The outside order forms on CC have versions with tax before or after shipping. But the 3-part forms only come in one version.
 
cathyskitchen said:
There are different outside order forms available on Consultant's Corner for download, not different sales receipts. The sales receipts are all the same. There are 3 different types of outside order forms - ones for states who tax S&H, one for states who don't, and one for states who have to charge the higher 15% S&H rate (non-contiguous states like Hawaii and Alaska).

Go to the bottom of the "Promotions and Programs" page on CC and you'll see it explained there. HTH!
Click to expand...

Learned something new everyday. I live in Illinois and we do not tax on shipping and handling, I didn't know that but a customer pointed it out, thank goodness she was one of my first orders. I have to go check this OFF out because the one I print shows as if you are taxed on it. Thanks!
 
We don't charge tax on shipping in Oklahoma, but my mom sold Lia Sophia jewelry for awhile and they charged tax on the shipping even in Ok. Since Ok doesn't charge/collect the tax, what does the company do with it? Lia Sophia charges tax on shipping no matter where you live.
 
OK, I did know that-sorry guys, I wasn't thinking. It was late for me when I was typing those thoughts in. Maybe this should be in another thread, but...

I don't like to use those because they usually get wasted. If/when you use the outside order forms, how many do you give to a host to use and when do you not give to a host? I have been using the regular order forms because they don't expire every month along with a flyer of the monthly specials...
 
Re: How to respond to this.... Florida
Loreen said:
Here 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?
Click to expand...

Thanks Loreen! I'm in Florida as well and appreciate it!! Would you mind forwarding that email to me as well please? My address is [email protected]

Thanks!
 
chefliz said:
OK, I did know that-sorry guys, I wasn't thinking. It was late for me when I was typing those thoughts in. Maybe this should be in another thread, but...

I don't like to use those because they usually get wasted. If/when you use the outside order forms, how many do you give to a host to use and when do you not give to a host? I have been using the regular order forms because they don't expire every month along with a flyer of the monthly specials...
Click to expand...

I use my own outside order forms that already include tax on the shipping. When I used the generic HO OOFs, I found that every outside order was short that 24 cents. It doesn't sound like much, but it sure adds up fast! My forms do not have the monthly specials on them, because I hate wasting the forms and like having a bunch of host packs always ready to go. But I do give each host enough monthly special flyers to put one in each catalog.
 
  • Thread starter
  • #39
chefann said:
I use my own outside order forms that already include tax on the shipping. When I used the generic HO OOFs, I found that every outside order was short that 24 cents. It doesn't sound like much, but it sure adds up fast! My forms do not have the monthly specials on them, because I hate wasting the forms and like having a bunch of host packs always ready to go. But I do give each host enough monthly special flyers to put one in each catalog.
Click to expand...

I think that is a fabulous idea and use of your time Ann. Perhaps I will borrow that fab idea from ya...that is of course if you don't mind.....
 
Please do - that's why I shared it! My OOF is in the files here. I know other people use it.
 
I've had customers complain (mainly MK consultants) about shipping costs PLUS tax on items!! Oh well, its all part of the game. Its the same with ordering items on line from other companies, they too have to charge us tax on s/h. Hubby just ordered a new bed mat for the truck and we had to pay tax, oh well. its a part of living! :-)
 
I also have come accross this several times... I read somewhere (can't remember where now) that people usually pay it without knowing because alot of companies lump it itno the shipping price and just charge more for shipping.
 
Thanks for the info...now I know who to blame...I mean how to explain that one!
 
I think this may have already been mentioned by others in a different way, but in my primary job I ship things every day of the week. In most states, if a product is taxable so is the shipping. It is just the way the tax laws are set up.
 

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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