[Skip to main content](#vessel-content) # Tax being applied to shipping ## - **[gpraceman](/forum/user/37240-gpraceman "View gpraceman's Profile")** - [![gpraceman's Avatar](https://www.hikashop.com/media/kunena/avatars/resized/size144/users/avatar37240.png)](/forum/user/37240-gpraceman "View gpraceman's Profile") Topic Author - [ Offline](/forum/user/37240-gpraceman) Less More - Posts: 166 - Thank you received: 11 - - [](http://grandprix-software-central.com) - 11 years 5 months ago [\#202239](#202239) by [gpraceman](/forum/user/37240-gpraceman "View gpraceman's Profile") *[Tax being applied to shipping](/forum/28-shipping-methods/877066-tax-being-applied-to-shipping#202239 "-- HikaShop version -- : 2.4.0 -- Joomla version -- : 3.4.1 -- PHP version -- : 5.4.39 I'm using Tax Cloud and on both USPS and FedEx shipping, tax is being applied. I set the product tax category for each to None, but still get tax being applied.")* was created by *[gpraceman](/forum/user/37240-gpraceman "View gpraceman's Profile")* -- HikaShop version -- : 2.4.0 -- Joomla version -- : 3.4.1 -- PHP version -- : 5.4.39 I'm using Tax Cloud and on both USPS and FedEx shipping, tax is being applied. I set the product tax category for each to None, but still get tax being applied. Please [Log in](/login?return=aHR0cHM6Ly93d3cuaGlrYXNob3AuY29tL2ZvcnVtLzI4LXNoaXBwaW5nLW1ldGhvZHMvODc3MDY2LXRheC1iZWluZy1hcHBsaWVkLXRvLXNoaXBwaW5nP3RtcGw9bWFya2Rvd24=) or [Create an account](/component/users/registration?Itemid=101) to join the conversation. - **[nicolas](/forum/user/63-nicolas "View nicolas's Profile")** - [![nicolas's Avatar](https://www.hikashop.com/media/kunena/avatars/resized/size144/users/avatar63.png?1793428657)](/forum/user/63-nicolas "View nicolas's Profile") - [ Offline](/forum/user/63-nicolas) Less More - Posts: 86555 - Thank you received: 14304 - - 11 years 5 months ago [\#202241](#202241) by [nicolas](/forum/user/63-nicolas "View nicolas's Profile") Replied by *[nicolas](/forum/user/63-nicolas "View nicolas's Profile")* on topic *[Tax being applied to shipping](/forum/28-shipping-methods/877066-tax-being-applied-to-shipping#202241 "-- HikaShop version -- : 2.4.0 -- Joomla version -- : 3.4.1 -- PHP version -- : 5.4.39 I'm using Tax Cloud and on both USPS and FedEx shipping, tax is being applied. I set the product tax category for each to None, but still get tax being applied.")* Hi, In the TaxCloud plugin, you need to configure the "Shipping TIC id" setting with the TIC id of shipping. Then, TaxCloud will automatically search for the tax rate for shipping fees and should find a 0% rate if taxes are not necessary and your shipping fees won't be taxed in that case. The following user(s) said Thank You: [gpraceman](/forum/user/37240-gpraceman "View gpraceman's Profile") Please [Log in](/login?return=aHR0cHM6Ly93d3cuaGlrYXNob3AuY29tL2ZvcnVtLzI4LXNoaXBwaW5nLW1ldGhvZHMvODc3MDY2LXRheC1iZWluZy1hcHBsaWVkLXRvLXNoaXBwaW5nP3RtcGw9bWFya2Rvd24=) or [Create an account](/component/users/registration?Itemid=101) to join the conversation. - **[TaxCloud](/forum/user/32971-taxcloud "View TaxCloud's Profile")** - [![TaxCloud's Avatar](https://www.hikashop.com/media/kunena/avatars/resized/size144/users/avatar32971.jpg)](/forum/user/32971-taxcloud "View TaxCloud's Profile") - [ Offline](/forum/user/32971-taxcloud) Less More - Posts: 41 - Thank you received: 14 - - 11 years 5 months ago - 11 years 5 months ago [\#202372](#202372) by [TaxCloud](/forum/user/32971-taxcloud "View TaxCloud's Profile") Replied by *[TaxCloud](/forum/user/32971-taxcloud "View TaxCloud's Profile")* on topic *[Tax being applied to shipping](/forum/28-shipping-methods/877066-tax-being-applied-to-shipping#202372 "-- HikaShop version -- : 2.4.0 -- Joomla version -- : 3.4.1 -- PHP version -- : 5.4.39 I'm using Tax Cloud and on both USPS and FedEx shipping, tax is being applied. I set the product tax category for each to None, but still get tax being applied.")* It is very important that you set the appropriate TaxCloud Taxability Information Code (TIC) for your shipping configuration. **Why?** Shipping is taxable (or exempt) based upon the your customers' state taxing rules (and in some states, based upon the categories of goods being sold). **Details:** Usually the correct TIC for shipping is **11010** - this TIC will attract exempt shipping where the destination state exempts shipping. However, the rules around sales tax exempt shipping are varied on a state-by-state basis, but most importantly, those states that do exempt shipping, **only allow that exemption if you are not marking-up your shipping charges to customers**, as can be demonstrated by your actual shipping cost invoices which can be compared to your customer invoices with shipping charges. If you are marking-up you shipping charges, you should use TaxCloud's Shipping & Handling TIC **11000**, and it will be taxable **in every state**. Further complicating things, some states that tax shipping charges (that are the actual cost of shipping) will exempt shipping if all the items being purchased are exempt! **Remember:** Just because shipping may be exempt in your state, no states share the same rules. These crazy rules are why you have chosen TaxCloud in the first place - because you don't need to know any of this stuff, our service is free, and we even indemnify you (and your customers) if there are any errors. --- TaxCloud is the internet's only free sales tax service. Learn more at [ taxcloud.com](https://taxcloud.com) Support available via [ service.taxcloud.net](http://service.taxcloud.net) or by email to service@taxcloud.net Last edit: 11 years 5 months ago by [TaxCloud](/forum/user/32971-taxcloud "View TaxCloud's Profile"). Reason: improper use of the code tag Please [Log in](/login?return=aHR0cHM6Ly93d3cuaGlrYXNob3AuY29tL2ZvcnVtLzI4LXNoaXBwaW5nLW1ldGhvZHMvODc3MDY2LXRheC1iZWluZy1hcHBsaWVkLXRvLXNoaXBwaW5nP3RtcGw9bWFya2Rvd24=) or [Create an account](/component/users/registration?Itemid=101) to join the conversation. - **[gpraceman](/forum/user/37240-gpraceman "View gpraceman's Profile")** - [![gpraceman's Avatar](https://www.hikashop.com/media/kunena/avatars/resized/size144/users/avatar37240.png)](/forum/user/37240-gpraceman "View gpraceman's Profile") Topic Author - [ Offline](/forum/user/37240-gpraceman) Less More - Posts: 166 - Thank you received: 11 - - [](http://grandprix-software-central.com) - 11 years 5 months ago - 11 years 5 months ago [\#202375](#202375) by [gpraceman](/forum/user/37240-gpraceman "View gpraceman's Profile") Replied by *[gpraceman](/forum/user/37240-gpraceman "View gpraceman's Profile")* on topic *[Tax being applied to shipping](/forum/28-shipping-methods/877066-tax-being-applied-to-shipping#202375 "-- HikaShop version -- : 2.4.0 -- Joomla version -- : 3.4.1 -- PHP version -- : 5.4.39 I'm using Tax Cloud and on both USPS and FedEx shipping, tax is being applied. I set the product tax category for each to None, but still get tax being applied.")* > TaxCloud wrote: It is very important that you set the appropriate TaxCloud Taxability Information Code (TIC) for your shipping configuration. > > **Why?** > Shipping is taxable (or exempt) based upon the your customers' state taxing rules (and in some states, based upon the categories of goods being sold). > > **Details:** > Usually the correct TIC for shipping is **11010** - this TIC will attract exempt shipping where the destination state exempts shipping. However, the rules around sales tax exempt shipping are varied on a state-by-state basis, but most importantly, those states that do exempt shipping, **only allow that exemption if you are not marking-up your shipping charges to customers**, as can be demonstrated by your actual shipping cost invoices which can be compared to your customer invoices with shipping charges. If you are marking-up you shipping charges, you should use TaxCloud's Shipping & Handling TIC **11000**, and it will be taxable **in every state**. > > Further complicating things, some states that tax shipping charges (that are the actual cost of shipping) will exempt shipping if all the items being purchased are exempt! > > **Remember:** Just because shipping may be exempt in your state, no states share the same rules. Thanks. I did get it squared away. I missed that there was a setting within the TaxCloud plugin. > TaxCloud wrote: These crazy rules are why you have chosen TaxCloud in the first place - because you don't need to know any of this stuff, our service is free, and we even indemnify you (and your customers) if there are any errors. Colorado does have a very complex tax structure, so I do appreciate your service. Before, we just charged the state tax and swallowed the rest, as our old shopping cart could not manage the complex structure. However, I do notice that Taxcloud doesn't reflect the 1.1% "Special District" tax within the Denver Metro Area. So, it is closer now to what it should be, but still a bit off. Last edit: 11 years 5 months ago by [gpraceman](/forum/user/37240-gpraceman "View gpraceman's Profile"). Please [Log in](/login?return=aHR0cHM6Ly93d3cuaGlrYXNob3AuY29tL2ZvcnVtLzI4LXNoaXBwaW5nLW1ldGhvZHMvODc3MDY2LXRheC1iZWluZy1hcHBsaWVkLXRvLXNoaXBwaW5nP3RtcGw9bWFya2Rvd24=) or [Create an account](/component/users/registration?Itemid=101) to join the conversation. - **[TaxCloud](/forum/user/32971-taxcloud "View TaxCloud's Profile")** - [![TaxCloud's Avatar](https://www.hikashop.com/media/kunena/avatars/resized/size144/users/avatar32971.jpg)](/forum/user/32971-taxcloud "View TaxCloud's Profile") - [ Offline](/forum/user/32971-taxcloud) Less More - Posts: 41 - Thank you received: 14 - - 11 years 5 months ago [\#202516](#202516) by [TaxCloud](/forum/user/32971-taxcloud "View TaxCloud's Profile") Replied by *[TaxCloud](/forum/user/32971-taxcloud "View TaxCloud's Profile")* on topic *[Tax being applied to shipping](/forum/28-shipping-methods/877066-tax-being-applied-to-shipping#202516 "-- HikaShop version -- : 2.4.0 -- Joomla version -- : 3.4.1 -- PHP version -- : 5.4.39 I'm using Tax Cloud and on both USPS and FedEx shipping, tax is being applied. I set the product tax category for each to None, but still get tax being applied.")* We should have the special district as well - did you validate the address to include a full plus4 zip code with the street address? If that doesn't fix, send an email to our service team to open a support ticket - be sure to include the street address so our team can investigate. Thanks for using TaxCloud! --- TaxCloud is the internet's only free sales tax service. Learn more at [ taxcloud.com](https://taxcloud.com) Support available via [ service.taxcloud.net](http://service.taxcloud.net) or by email to service@taxcloud.net Please [Log in](/login?return=aHR0cHM6Ly93d3cuaGlrYXNob3AuY29tL2ZvcnVtLzI4LXNoaXBwaW5nLW1ldGhvZHMvODc3MDY2LXRheC1iZWluZy1hcHBsaWVkLXRvLXNoaXBwaW5nP3RtcGw9bWFya2Rvd24=) or [Create an account](/component/users/registration?Itemid=101) to join the conversation. - **[gpraceman](/forum/user/37240-gpraceman "View gpraceman's Profile")** - [![gpraceman's Avatar](https://www.hikashop.com/media/kunena/avatars/resized/size144/users/avatar37240.png)](/forum/user/37240-gpraceman "View gpraceman's Profile") Topic Author - [ Offline](/forum/user/37240-gpraceman) Less More - Posts: 166 - Thank you received: 11 - - [](http://grandprix-software-central.com) - 11 years 5 months ago [\#202521](#202521) by [gpraceman](/forum/user/37240-gpraceman "View gpraceman's Profile") Replied by *[gpraceman](/forum/user/37240-gpraceman "View gpraceman's Profile")* on topic *[Tax being applied to shipping](/forum/28-shipping-methods/877066-tax-being-applied-to-shipping#202521 "-- HikaShop version -- : 2.4.0 -- Joomla version -- : 3.4.1 -- PHP version -- : 5.4.39 I'm using Tax Cloud and on both USPS and FedEx shipping, tax is being applied. I set the product tax category for each to None, but still get tax being applied.")* Even with the zip+4 it still returns a rate of 3.9%. That is the same rate that the TaxCloud website shows for that address. The Special District tax is 1.1%, so the total tax rate should be 5.0%. I sent in a support email about this. Please [Log in](/login?return=aHR0cHM6Ly93d3cuaGlrYXNob3AuY29tL2ZvcnVtLzI4LXNoaXBwaW5nLW1ldGhvZHMvODc3MDY2LXRheC1iZWluZy1hcHBsaWVkLXRvLXNoaXBwaW5nP3RtcGw9bWFya2Rvd24=) or [Create an account](/component/users/registration?Itemid=101) to join the conversation. - **[TaxCloud](/forum/user/32971-taxcloud "View TaxCloud's Profile")** - [![TaxCloud's Avatar](https://www.hikashop.com/media/kunena/avatars/resized/size144/users/avatar32971.jpg)](/forum/user/32971-taxcloud "View TaxCloud's Profile") - [ Offline](/forum/user/32971-taxcloud) Less More - Posts: 41 - Thank you received: 14 - - 11 years 5 months ago [\#202688](#202688) by [TaxCloud](/forum/user/32971-taxcloud "View TaxCloud's Profile") Replied by *[TaxCloud](/forum/user/32971-taxcloud "View TaxCloud's Profile")* on topic *[Tax being applied to shipping](/forum/28-shipping-methods/877066-tax-being-applied-to-shipping#202688 "-- HikaShop version -- : 2.4.0 -- Joomla version -- : 3.4.1 -- PHP version -- : 5.4.39 I'm using Tax Cloud and on both USPS and FedEx shipping, tax is being applied. I set the product tax category for each to None, but still get tax being applied.")* We are investigating - thanks for the heads-up. Colorado doesn't provide us data like most other states, so we have to buy data from several third-parties, and sometimes they just don't get it right. We are working on getting this special district added ASAP. --- TaxCloud is the internet's only free sales tax service. Learn more at [ taxcloud.com](https://taxcloud.com) Support available via [ service.taxcloud.net](http://service.taxcloud.net) or by email to service@taxcloud.net The following user(s) said Thank You: [nicolas](/forum/user/63-nicolas "View nicolas's Profile") Please [Log in](/login?return=aHR0cHM6Ly93d3cuaGlrYXNob3AuY29tL2ZvcnVtLzI4LXNoaXBwaW5nLW1ldGhvZHMvODc3MDY2LXRheC1iZWluZy1hcHBsaWVkLXRvLXNoaXBwaW5nP3RtcGw9bWFya2Rvd24=) or [Create an account](/component/users/registration?Itemid=101) to join the conversation. 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