Defining Freight/Handling Taxability for States

The rules that determine whether freight and handling charges are taxable vary from state to state, and vary according to the products being sold. After reviewing the rules, you must determine how the rules apply to the products you sell and then fill in the information on the Freight/Handling Taxability screen.

Use the Freight/Handling Taxability screen to designate for each state whether freight and handling charges applied to items shipped to that state are taxable.

Note: Eclipse does not maintain this table. You are responsible for keeping this table up-to-date.

To define freight/handling taxability for states:

1. From the Files > Tax & Duty > National Sales Tax menu, select Freight/Handling Taxability to display the Freight/Handling Taxability screen.

The State column populates with the abbreviations for each state and the District of Columbia.

2. In the Freight-In, Freight-Out, Handling-In, and Handling-Out fields for each state, indicate whether those charges on items shipped to that state are taxable. The default is N.

See Also:

Paying State Tax on Out-of-State Shipments

National Sales Tax Database Overview