Why is tax being calculated on shipping/freight in California?
Overview
One of our customers in California is being charged tax on the sale plus shipping. |
Environment
Avalara Avatax
California
Resolution
Tax Code FR030000 stands for Shipping And Handling Combined which is taxable in California. Tax Code FR is for freight alone, which is indeed nontaxable in California. |
Cause
Customer was using the tax code for shipping and handling combined and not just freight itself.