DOTS FastTax

SALES TAX USAGE AND EXEMPTIONS

General Considerations: If an item is subject to sales tax in the state to which the order is shipped, the tax is generally calculated on the total selling price of each individual item. However, some states do not charge sales tax for Shipping (freight) and Handling (labor) and in many states, services are also exempt from sales tax.

DOTS FastTax flags these exemptions, however, they must be parsed individually.

Also, when goods are purchased in Idaho from a retailer in that state, whether by phone, a Website or mail-order catalog, the retailer should charge Idaho sales tax.

However, if goods are purchased from an Idaho retailer, outside of Idaho, the retailer will not charge sales tax unless he has an outlet in the state from which the purchase is being made; then the local sales tax associated with the buyer will apply.

DEFINITION OF TERMS

Freight: Shipping charges, separately stated on an invoice. If freight is embedded within tangible personal property charges on an invoice, these exempt rules may not apply.

Your specific delivery method, product or service may receive different tax treatment depending on the tax rules of the state in which you are selling your goods.

Labor: Manual labor such as home repairs.

Services: Professional services, such as accounting, legal, or professional services.