How does TaxJar treat shipping and handling?
Our TaxJar Reports are programmed to view shipping taxability based on the most common use-case and defaults according to state-specific shipping taxability rules.
The TaxJar API is programmed to either calculate or not calculate tax on shipping in a specific state based on the most common use-case as well.
The good news is TaxJar now supports our customers to over-ride the default settings for shipping taxability on a state by state basis for their particular business setup.
- You can change this setting shipping taxability in your State Nexus Settings:
💡TaxJar does not currently offer the option for businesses to default to not collect tax in a state where shipping is generally taxable to prevent unintended errors.
- Therefore, at this time, default taxability settings for shipping is adjustable for states where shipping is generally tax-exempt.
Important: When you make this change and are using the TaxJar API, your calculations will also change.