In Georgia, shipping charges are taxable if they’re part of the sale of taxable goods. However, exemptions may apply when shipping is separately stated.
General Rule
Taxable: Shipping charges are taxable if connected to taxable sales.
Exempt: Shipping may be exempt if separately stated and associated only with exempt goods.
Handling Charges
Handling fees and “shipping & handling” combined charges are taxable in full.
Best Practices for Compliance
Itemize delivery separately on invoices.
Don’t bundle shipping with handling, since this makes the whole fee taxable.
Example
A taxable product with $20 “Delivery” separately stated → $20 may be exempt.
A taxable product with $20 “Shipping & Handling” → $20 is taxable.
Stay Compliant with Kintsugi
Georgia’s rules reward clear separation of delivery charges. Kintsugi Intelligence ensures your invoices are properly structured to minimize risk.
⚖️ Important Notice: Sales tax regulations are subject to change without prior notice. For guidance tailored to your business, please consult a qualified tax advisor.