[ic] Handling charges taxable when shipping charges are?
Mort
mort at dlxmail.com
Fri Dec 11 15:36:24 UTC 2015
Quoting Josh Lavin (jlavin at endpoint.com):
> List folk,
>
> It seems that Interchange does not apply sales tax to Handling charges,
> even when Shipping charges are set up to be taxable.
>
> e.g.
>
> config: TaxShipping TX
> variable: TAXRATE TX=8.25
>
> subtotal: $19.99
> shipping: 5.38
> sales tax: 2.09 (25.37 * .0825)
> handling: 5.00
> ------------------
> total: $32.46
>
> This is a problem at least for Texas, where both shipping and handling
> charges are to be taxable:
>
> "Shipping and handling charges are taxable if the charges are
> associated with the sale of taxable goods or service."
>
> http://comptroller.texas.gov/taxinfo/sales/faq_collect.html#collect8
>
> It seems that several other US states are in the same situation:
>
> https://www.boe.ca.gov/formspubs/pub100/
> https://revenue-pa.custhelp.com/app/answers/detail/a_id/214/~/are-shipping-and%2For-handling-charges-subject-to-sales-tax%3F
> http://www.floridasalestax.com/Florida-Sales-Tax-Rules/12A-1-045.aspx
> http://www.stateandlocaltax.com/noteworthy-cases/handle-with-care-shipping-and-handling-fees-subject-to-arizona-transaction-privilege-tax/
>
> I wonder if others have experienced this?
>
> Or is anyone in a locale where your situation is different -- where
> shipping is taxable, but handling is not?
>
> It seems this patch to Interpolate.pm would fix it (around line 5752):
>
> foreach $code (@code) {
> next unless $Vend::Cfg->{TaxShipping} =~ /\b\Q$code\E\b/i;
> $amount += tag_shipping();
> + $amount += tag_handling();
> last;
> }
>
> But to make this change to core IC would mean that all existing IC
> catalogs with taxable shipping would start having handling taxable, even
> if it wasn't before.
>
> If this is considered a bug, then such a change would be a good thing.
>
> An alternative change would be to add a new config, "TaxHandling", and
> process it in a separate for() block than shipping. This would thus
> require a configuration change for it to take effect.
>
> Thoughts?
If we are going to make a change, I think we should add TaxHandling
so that the change is willful. That way if someone needs it, they
can make it, but it won't break existing people.
--
Mike Heins
End Point -- Expert Internet Consulting http://www.endpoint.com/
phone +1.765.253.4194 <mikeh at endpoint.com>
Socialism -- ideas so good they have to be enforced at gunpoint.
-- unknown
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