Is shipping taxable in North Dakota?
by January 25, 2024
Please note: This blog was originally published in 2017. It’s since been updated for accuracy and comprehensiveness.
One of the toughest parts of being an e-commerce seller is keeping track of sales tax. What’s taxable? What isn’t? How much should you charge. And part of that includes shipping charges. Some states require sellers to charge sales tax on shipping charges and others do not. Today we’ll look at North Dakota and try to figure out if shipping is taxable.
Is shipping taxable in North Dakota?
If the item you are selling is taxable then the freight, delivery or other transportation charges are also considered a taxable part of the selling price.
If the item you’re selling is not taxable, then don’t charge sales tax on the shipping charges either. If some of the products are tax exempt and some are taxable, then charge sales tax on shipping based on the amount of shipping you are charging for the taxable item(s).
Handling North Dakota shipping and handling sales tax with TaxJar
The TaxJar app defaults to the most common North Dakota scenario – that shipping and handling is taxable. However, if your business does charge sales tax on shipping, then TaxJar’s Shipping & Handling Override allows you to update that in your state tax settings. This will make the North Dakota Expected Sales Tax Due Report more accurate. This will also tell the TaxJar API to charge sales tax on North Dakota shipping. Learn more about how TaxJar treats shipping and handling here. And to learn more about TaxJar and get started, visit TaxJar.com/how-it-works.
Summary of North Dakota Shipping Taxability
If the item you are selling is taxable, charge sales tax on shipping charges, too. If the item you are selling is not taxable, don’t charge sales tax on shipping charges.
If you sell a mix of taxable and non-taxable items, charge sales tax based on the weight or price of the taxable item(s).
Have questions about shipping taxability in another state? Check out our “Is shipping taxable?” post.
Ready to automate sales tax? Sign up for a free trial of TaxJar today
Please note: This blog is for informational purposes only. Be advised that sales tax rules and laws are subject to change at any time. For specific sales tax advice regarding your business, contact a tax advisor.
