How Virginia Handles Tax on Shipping

In Virginia, shipping charges may be exempt if properly separated from handling.

General Rule

• Exempt: Separately stated shipping charges are exempt.
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• Taxable: If combined with handling or included in product price, the charge is taxable.
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Handling Charges

• Handling fees are always taxable.
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• Combined “shipping & handling” charges are taxable in full.
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Best Practices for Compliance

• Break out shipping separately from handling on invoices.
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• Label charges as “Delivery” to improve exemption eligibility.
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Example

1. Selling taxable goods with $25 “Delivery” separately stated → $25 is exempt.
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2. Selling same goods with $25 “Shipping & Handling” → $25 is taxable.
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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.