Instructions For Sales And Use Tax On Delivery Charges printable pdf download

Instructions For Sales And Use Tax On Delivery Charges

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April 2011

ebraska

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Overview

Delivery charges are taxable when BOTH:

1. The purchaser’s transaction with the retailer is taxable; AND

2. The purchaser pays the delivery charge to the retailer.

Delivery charges paid to the retailer in conjunction with a sales transaction are part of the retailer’s

gross receipts for the sale.

Delivery charges are tax exempt when the charges are associated with the sale of tax exempt property or

when the purchaser contracts with, and pays the delivery or freight company separately.

This information guide is intended to provide an overview. Nothing in this guide supersedes, alters,

or otherwise changes any provisions of the Nebraska tax code, regulations, Nebraska Department of

Revenue (Department) rulings, or court decisions.

This information guide may change with updated information or added examples. The

Department recommends you do not print this guide. Instead, sign up for the subscription

service at to get updates on your topics of interest.

terms

Delivery Charges. Delivery charges mean charges by the retailer for the preparation and delivery of personal

property or services to a location designated by the purchaser. Delivery charges include:

v Freight, transportation, fuel surcharges, shipping, and postage; and

v Handling, crating, and packing.

Sales Price. Sales price means the total amount of the sale without deduction for any of the following:

v The retailer’s cost of the property;

v The retailer’s cost of materials used, labor or services, interest, cost of transportation to the retailer, taxes

imposed on the retailer, and other expenses of the retailer;

v Charges by the retailer for services necessary to complete the sale;

v Delivery charges; and

v Installation charges.

6-507-2011

Nebraska Sales and Use Tax Guide on Delivery Charges Information Guide, April 8, 2011, Page 1

Instructions For Sales And Use Tax On Delivery Charges