Is shipping taxable in Rhode Island?
by October 21, 2023
Please note: This blog was originally published in 2018. It’s since been updated for accuracy and comprehensiveness.
Ever been confused by sales tax? Don’t worry, you are not alone. It can be difficult subject to navigate, especially because each state generates their own legislation to deal with it. Subjects like whether to charge sales tax on shipping and handling can be very trying. Let’s see what the state of Rhode Island has on file for that very subject.
Is shipping taxable in Rhode Island?
You will most likely need to charge sales tax on shipping charges in Rhode Island. Rhode Island considers shipping charges a part of the sale price of the item, so if the item is taxable so is shipping.
On the other hand, if the item isn’t taxable, then don’t charge sales tax on the shipping charges.
Handling Rhode Island shipping and handling sales tax with TaxJar
The TaxJar app defaults to the most common Rhode Island scenario – that shipping and handling is taxable. However, if your business does not 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 Rhode Island Expected Sales Tax Due Report more accurate. This will also tell the TaxJar API to not charge sales tax on Rhode Island shipping. Learn more about how TaxJar treats shipping and handling here. To learn more about TaxJar and get started, visit TaxJar.com/how-it-works.
Takeaway
If the item you are selling is taxable, then charge sales tax on the shipping charges to customers in Rhode Island. If the item isn’t taxable, don’t charge sales tax on the shipping charges.
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.
