45 IAC 2.2-4-3 - Selling at retail; delivery charges

Authority: IC 6-8.1-3-3

Affected: IC 6-2.5

Sec. 3.

(a) Separately stated delivery charges are considered part of selling at retail and subject to sales and use tax if the delivery is made by or on behalf of the seller of property not owned by the buyer.

(b) The following guidelines have been developed:

(1) Delivery charge separately stated with F.O.B. destination-taxable.

(2) Delivery charge separately stated with F.O.B. origin-non taxable.

(3) Delivery charge separately stated where no F.O.B. has been established-non taxable.

(4) Delivery charges included in the purchase price are taxable.

(c) Two considerations must always be kept in mind in applying these guidelines:

(1) The rules do not override established interstate commerce exemptions recognized by IC 6-2.1-3-3 (see 6-2.5-5-24(b)(010) [ 45 IAC 2.2-5-54 ]).

(2) The rules are only applicable in determining whether or not the delivery charge of an otherwise taxable sale is also subject to sales or use tax.

Notes

45 IAC 2.2-4-3

Department of State Revenue; Ch. 4, Reg. 6-2.5-4-1 e (010); filed Dec 1, 1982, 10:35 am: 6 IR 16; filed Aug 6, 1987, 4:30 pm: 10 IR 2613