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Sales Tax on Shipping
Last Post 3/24/2010 2:07:09 PM By lukezy. 4 replies.
3/24/2010 12:13:06 PM
RobWellsKY
Posts: 4
Joined: 10/30/2008
Sales Tax on Shipping
I am using version 2.0 of DotShoppingCart.
 
I live in Kentucky.  When I add sales tax of 0.6, it is taxing the cost of the item and is also taxing the shipping cost.
 
Is there a way to only tax the cost of the item, and not tax the shipping cost?
 
I've read a dozen articles, and the answer in most of them is:

"Shipping and handling is not subject to sales tax in any state I am aware of. You need to contact any retailer who charged sales tax on shipping and handling charges and request a refund."
 
However, I tried several major shopping carts, and the following all charged me tax based on the product price + the shipping cost:
 
-  Amazon.com
-  Walmart.com
-  Victoria's Secret
-  Eddie Bauer
3/24/2010 12:50:44 PM
lukezy
Posts: 2109
Joined: 6/12/2007
Location:WA, US
Re: Sales Tax on Shipping
From http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States you can see several states require sales tax on shipping charge. I don't see the specific for Kentucky. Generally sales tax applies to shipping charge. But it's better you ask Kentucky tax office to double confirm.
DotShoppingCart Staff
3/24/2010 12:55:46 PM
lukezy
Posts: 2109
Joined: 6/12/2007
Location:WA, US
Re: Sales Tax on Shipping
Here is what Amazon says about Sales Tax.
 
How Tax Is Calculated

If an item is subject to sales tax in the state to which the order is shipped, tax is generally calculated on the total selling price of each individual item. In accordance with state tax laws, the total selling price of an item will generally include item-level shipping and handling charges, item-level discounts, gift-wrap charges, and an allocation of order-level shipping and handling charges and order-level discounts.

DotShoppingCart Staff
3/24/2010 1:54:24 PM
RobWellsKY
Posts: 4
Joined: 10/30/2008
Re: Sales Tax on Shipping
The question that started this discussion is whether or not DotShoppingCart has an option to not charge tax on shipping - to only charge tax on the product(s) being purchased.  I think the answer is No, but I want to make sure.  If the Kentucky law states that sales tax cannot be charged on shipping, then it is a feature that I would need in order to handle this appropriately.
3/24/2010 2:07:09 PM
lukezy
Posts: 2109
Joined: 6/12/2007
Location:WA, US
Re: Sales Tax on Shipping
The answer is actually Yes. In DSC.config there is a section that defines the orders of orderTotalService. You can just swap the sortOrder for ShippingOrderTotalProvider and TaxOrderTotalProvider.
 
    <orderTotalServiceConfigurationdefaultProvider="">
        <providers>
            <clear />
            <add enabled="True" sortOrder="0" name="SubtotalOrderTotalProvider" type="DotShoppingCart.Commercial.OrderTotal.SubtotalOrderTotalProvider" />
            <add enabled="True" sortOrder="10" name="ShippingOrderTotalProvider" type="DotShoppingCart.Commercial.OrderTotal.ShippingOrderTotalProvider" />
            <add enabled="True" sortOrder="100" name="TaxOrderTotalProvider" type="DotShoppingCart.Commercial.OrderTotal.TaxOrderTotalProvider" />
            <add enabled="True "sortOrder="2147483647" name="GrandTotalOrderTotalProvider" type="DotShoppingCart.Commercial.OrderTotal.GrandTotalOrderTotalProvider" />
        </providers>
    </orderTotalServiceConfiguration>
DotShoppingCart Staff
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