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Sales tax calculation for Intuit purchases

SOLVEDby QuickBooks5Updated over 1 year ago

How much sales tax will be added to your order

The sales tax charged for an individual transaction is based on the Shipping Address, which is defined as the location where the product is ultimately received by the Intuit customer. The applicable sales tax charged is based on the ZIP code within the specific state where the product has been received.

The amount charged will include all state, county, and local taxes as required by law. In most cases, these taxes will apply to the shipping and handling fee as well as the product price. Although some states do not require sales tax on a separately stated, reasonable shipping charge, this charge is generally regarded as taxable when it is combined with a handling fee. Because Intuit charges a shipping and handling fee, applicable sales tax* is collected on this fee, in addition to the tangible product.

Because tax requirements vary between states, Intuit must calculate sales tax at the time of shipment. Please check your confirmation e-mail or your credit card statement to verify the final charge for your order.

Why Intuit collects sales tax on Internet sales and sales to out-of-state customers

Although Intuit generates a large portion of multi-state sales through the Internet, Intuit does business in each state and the taxing authorities of the individual states have previously determined that Intuit has a legal presence (commonly referred to as a "Nexus") in their respective states. Therefore, Intuit is required to collect and remit the applicable sales tax for all taxable transactions in their state.

Factors that determine a Nexus include (but are not limited to) the following:

  • Offices located within the state
  • Equipment located within the state
  • Direct Mail and other advertising that is distributed to in-state residents via the U.S. USPS
  • Congress did pass a moratorium on taxable transactions that are generated exclusively through the Internet. However, any company that already has a Nexus in a state (such as Intuit) is still required to conform to existing state laws regarding collecting and remitting sales tax on taxable transactions that occur in that state.

Sales tax collection when the shipping address is in a non-taxable state

Note: State sales tax is not to be confused with state income tax. The following states do not collect income tax, but still require Intuit to collect and remit sales tax: Nevada, South Dakota, Texas, Washington, and Wyoming. Florida also requires Intuit to collect and remit sales tax, but does not always require its residents to file income tax.

  • Intuit does not collect sales tax on products shipped to Alaska, Delaware, Montana, New Hampshire, and Oregon, as these five states do not currently impose a sales tax.
  • As a general rule, shipment of goods to any of the five states listed above will not result in a sales tax billing. If your order was delivered to an alternate shipping address, this address, and not the billing address, will determine whether or not sales tax should apply as well as the applicable sales tax rate.

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