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Understanding Taxing Shipping: Explaining the Reasons and Benefits | Elizabeth

In summary, taxing shipping is a way for governments to generate revenue by imposing a tax on the transportation of goods. Not all shipping methods are taxed and the tax rate is determined by the government. In most cases, the consumer is responsible for paying the tax, but in some cases, the seller may be responsible. Shipping tax is generally not refundable, but in some cases, a refund may be possible for non-taxable items or returned items. It is best to check with the seller or government agency for eligibility.
ElizabethPurvis
ElizabethPurvis
101
Ok, I'm planning on calling HO tomorrow with this question too, but thought I might get a faster answer from all of you...

I have a host who is complaining about the company taxing the shipping...basically her friends want to know why we do it. I have no idea why, and I told her that. She thinks that it's just so the company can make more money on top of what they get from products. Can anyone shed some light on this? She wants to book another show in Dec, but only if I can give her a good reason as to why this is done. HELP!!

TIA!

Elizabeth
 
PC doesn't get the money. The CO government does. Tell her she can thank her state government;) .
 
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  • #3
Ok. Thanks!! I was hoping that it was something beyond PCs control. But why do they do that? We dont pay taxes for postage...or do we??
 
I don't know about that, but my guess would be that postage taxes are built in? Not sure...but definitely, shipping taxes are out of our control.
 
The state regulates whether or not the "handling" is taxable or not. Some states do, some don't. Show her the backside of a sales reciept. It will show her the states that charge tax on shipping. If they dont like it, tell 'em to write their congressmen. I say that (with a smile of course) all the time to the hecklers about that issue. ;)
 
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Thanks so much!!
 

1. What is the purpose of taxing shipping?

Taxing shipping is a way for governments to generate revenue by imposing a tax on the transportation of goods. This tax is typically paid by the consumer when they purchase items that require shipping, and the collected tax goes towards funding government programs and services.

2. Are all shipping methods taxed?

No, not all shipping methods are taxed. In some cases, certain types of shipping may be exempt from taxation, such as non-commercial shipments or those sent as gifts.

3. How is the tax rate for shipping determined?

The tax rate for shipping is determined by the government and can vary depending on the location and the type of goods being shipped. Some areas may have higher tax rates for shipping, while others may have lower or no taxes at all.

4. Who is responsible for paying the tax on shipping?

In most cases, the consumer who is purchasing the goods is responsible for paying the tax on shipping. However, in some cases, the seller may be responsible for collecting and remitting the tax on behalf of the consumer.

5. Is shipping tax refundable?

In general, shipping tax is not refundable. However, if you have been charged a tax on shipping for a non-taxable item or if the item is returned, you may be eligible for a refund of the shipping tax. It is best to check with the seller or the government agency responsible for collecting the tax to determine if you are eligible for a refund.

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