In Virginia, shipping charges may be exempt if properly separated from handling.
General Rule
Exempt: Separately stated shipping charges are exempt.
Taxable: If combined with handling or included in product price, the charge is taxable.
Handling Charges
Handling fees are always taxable.
Combined “shipping & handling” charges are taxable in full.
Best Practices for Compliance
Break out shipping separately from handling on invoices.
Label charges as “Delivery” to improve exemption eligibility.
Example
Selling taxable goods with $25 “Delivery” separately stated → $25 is exempt.
Selling same goods with $25 “Shipping & Handling” → $25 is taxable.
Stay Compliant with Kintsugi
Virginia requires invoices to clearly separate delivery from handling. Kintsugi Intelligence ensures charges are properly applied to meet state rules.
⚖️ Important Notice: Sales tax regulations are subject to change without prior notice. For guidance tailored to your business, please consult a qualified tax advisor.