No Tax on Shipping for Food Orders in Ontario

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Discussion Overview

The thread discusses the taxation of shipping for food orders in various regions, particularly focusing on experiences from Ontario and comparisons with other states in the U.S. Participants share their personal experiences regarding tax policies and shipping charges related to food items.

Discussion Character

  • Anecdotal
  • Opinion-based
  • Exploratory

Main Points Raised

  • One participant, identifying as a consultant from Ontario, notes that their shipping was not taxed when ordering only food items, leading to confusion about the tax policy.
  • Another participant shares their experience from New Jersey, stating that shipping is not taxed if the order contains only food items.
  • Several users mention varying tax policies across different states in the U.S., with some stating that shipping is taxed based on the type of items ordered.
  • One participant expresses frustration over customers arguing about shipping tax, emphasizing that it is mandated by state law.
  • Another participant reflects on the perception of shipping tax among customers, suggesting that some may not understand how it is applied.
  • One participant shares their experience of being accused of charging tax illegally, clarifying that it is a state requirement.

Areas of Agreement / Disagreement

Views differ on the specifics of shipping tax policies, with no clear consensus emerging on the rules applicable in Ontario compared to other regions.

Contextual Notes

Participants are sharing personal experiences and observations regarding tax policies in their respective areas, highlighting the complexity and variability of shipping tax regulations.

Who May Find This Useful

This discussion may be of interest to consultants navigating shipping tax policies and those looking to understand regional differences in taxation related to food orders.

kcjodih
kcjodih
Gold Member
Messages
3,391
Our shipping is taxed here in Ontario. I just entered an order with direct shipping for 3 spices (which aren't taxed - no tax on food, only GST on cookbooks) and nothing else and there was no tax charged. The shipping was $2.50 more but the shipping wasn't taxed. Any idea why that would be? If I order just a cookbook or just a citrus peeler and nothing else it would have been but since there wasn't any tax on the order, there was no tax at all!! :confused: I just tried the order again with nothing at all but a citrus peeler at $1.50 and it charged shipping of course and tax on both the peeler and the shipping like it should, so why no tax on shipping when the order is food only and not taxed? :confused::confused:
 
Hi!

I can't speak about Ontario -but in NJ - tax is only on shipping if the order contains at least one item that is taxable. So if the order is only food (no tax on food in NJ) there is no tax on the shipping.

HTH -
Lisa
 
  • Thread starter
  • #3
Hmmm, maybe that IS the reason here as well. Hopefully a fellow Ontarian or at least Canadian will way in too. Thanks Lisa!
 
I'm in NJ as well. And, yes if you are only shipping food the shipping is not taxed. That happened on my first show....I was like WTH? LOL
 
NC tax is 6.75% and food tax is 2%. If someone only buys pantry items her shipping is taxed at 2%. If she buys even just a seasons best the shipping tax changes to the 6.75%. That's just how it's set up - your customer gets the benefit!
 
Here in the US it varies from state to state and gets charged based on the state of delivery, the same goes for sales tax. I live in NY and just had an outside order from a party go to Mass. Our local tax is 8%, theirs is only 5%. NY charges 8% tax on S&H, Mass charges none. On consultant corner you can look up the taxes for where items are being delivered. I have no idea how Canada does it.
 
Makes me grateful to live in a state that doesn't tax the shipping at all!
 
Ditto Allison... I love being able to tell my customers that!
 
Our state charges tax on shipping also. I had a guest at a show get quite argumentative with me about this. She acted like it was me. I told her it was a state law and there was nothing I could do about it. She still argued that others did not do this. ??? I asked who and she wouldn't get specific...

We don't charge tax on food, so I am wondering if it is the same way here (no tax on shipping either for food only order). Atleast if it happens, I'll know what is going on! Very interesting.
 
kam said:
Our state charges tax on shipping also. I had a guest at a show get quite argumentative with me about this. She acted like it was me. I told her it was a state law and there was nothing I could do about it. She still argued that others did not do this. ??? I asked who and she wouldn't get specific...

We don't charge tax on food, so I am wondering if it is the same way here (no tax on shipping either for food only order). Atleast if it happens, I'll know what is going on! Very interesting.
Click to expand...

It's so frustrating when people argue over the tax on shipping. It's only 26 cents! (in PA it's 6% tax) I wonder if the other DS companies are doing it, just adding it in the cost somehow and the customer doesn't realize? I would think if it's a law, it's a law, and it would have to be clearly marked, right?! :confused:
 
babywings76 said:
It's so frustrating when people argue over the tax on shipping. It's only 26 cents! (in PA it's 6% tax) I wonder if the other DS companies are doing it, just adding it in the cost somehow and the customer doesn't realize? I would think if it's a law, it's a law, and it would have to be clearly marked, right?! :confused:
Click to expand...

LOL, I know. Like we're gonna run away with their extra .26 or so cents :)
 
babywings76 said:
It's so frustrating when people argue over the tax on shipping. It's only 26 cents! (in PA it's 6% tax) I wonder if the other DS companies are doing it, just adding it in the cost somehow and the customer doesn't realize? I would think if it's a law, it's a law, and it would have to be clearly marked, right?! :confused:
Click to expand...

I wonder this too - I've had other DS consultants who have questioned my charging tax on shipping - one even accused me of doing it illegally. I just tell them that it's not me - it's the state of Michigan who mandates that charge, and it would be illegal for me to NOT collect it. (it's 6% here too.)
 
babywings76 said:
It's so frustrating when people argue over the tax on shipping. It's only 26 cents! (in PA it's 6% tax) I wonder if the other DS companies are doing it, just adding it in the cost somehow and the customer doesn't realize? I would think if it's a law, it's a law, and it would have to be clearly marked, right?! :confused:
Click to expand...

I am thinking the same thing, that other DS companies might add it "differently". So maybe that's why this lady was so upset. But, yes, I would think it should be clearly marked.
 

Frequently Asked Questions

1. Is there tax on shipping for food orders in Ontario?

No, in Ontario, shipping charges for food orders are generally exempt from tax. This means that when you purchase food items, you do not have to pay tax on the shipping costs associated with those orders.

2. What types of food orders qualify for no tax on shipping in Ontario?

Food orders that qualify for no tax on shipping in Ontario typically include items that are considered basic groceries, such as fruits, vegetables, dairy products, and meat. However, prepared foods or items that are not classified as basic groceries may not be eligible.

3. Are there any exceptions to the no tax on shipping rule for food orders?

Yes, there are exceptions. If the food order includes items that are not considered basic groceries, such as snacks, beverages, or prepared meals, the shipping charges for those items may be subject to tax.

4. How can I ensure that my food order shipping is tax-exempt?

To ensure that your food order shipping is tax-exempt, make sure that all items in your order are classified as basic groceries. You can check with the retailer or refer to the Ontario government's guidelines on taxable and non-taxable items.

5. What should I do if I was charged tax on shipping for my food order?

If you were charged tax on shipping for a food order that qualifies for tax exemption, you should contact the retailer for clarification. They may be able to issue a refund for the tax charged in error or provide further information regarding the charges.

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