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Sales tax on shipping and handling

We continue to get questions on sales tax for shipping and handling.  First off, if you combine them together then the entire  amount is subject to Florida sales tax.  Secondly,  if the customer has no choice on how they get the merchandise and it must be shipped, it’s taxable, while if they could pick up the order at your place of business instead of having it shipped, then the shipping is not taxable if title, ownership, risk and responsibility for the merchandise transfers to the buyer as soon as it leaves your place, even if it hasn’t reached the buyer yet.  The shipment is considered Free On Board and delivery is not taxable.

If your customer arranges for shipping themselves and pays the shipping company directly, it’s not taxable.

As you can see, it’s not always cut and dried.  Contact your tax professional on specific cases.