Does sales tax depend on shipping address or billing address?
Tax is calculated based on the shipping address (not the billing address) and is calculated as a percentage of the order total, including shipping and handling costs.
What happens if you have a different shipping and billing address?
It’s often used for fraud detection and any suspicious billing and shipping address discrepancies can trigger a temporary suspension or blocking of your credit card.
Is sales tax based on ship to location?
If the item is shipped to the customer, then tax applies for the delivery state, whether that is the same state where the seller is located or a different state. Sellers should collect sales tax only if they are registered to collect sales tax in that state.
Can I ship something to another state to avoid sales tax?
Nothing against the law about buying anything at all in another state without a sales tax or a lower sales tax. However, technically speaking, if you follow the law exactly, you can’t “avoid” the sales tax of the state where you live.
Which states are destination-based sales tax?
The following states use the destination-based method:
- Alabama.
- Arkansas.
- Colorado.
- Connecticut.
- District of Columbia.
- Florida.
- Georgia.
- Hawaii.
Does shipping and billing address need to match?
For credit card verification you must enter your billing address exactly as it appears on your credit card statement. However, the shipping address you wish to ship to does not need to match your billing or credit card address.
Does billing address affect sales tax?
The slightly longer answer is that sales tax is charged at the point of sale. So you, the seller, would charge her sales tax based on her shipping address. Her billing address does not figure into your sales tax calculations.
How do I ship to a different state?
What is the best way to ship boxes to another state?
- For one or two boxes under 70 lbs, USPS or parcel shipping is often ideal.
- For three or more boxes, large boxes, or heavy boxes, flat rate freight shipping is best.
- For boxes containing fragile or valuable items, White Glove shipping is the safest method.