Shipping not supposed to be included in tax calculations.

Shipping is not supposed to be included in tax calculations. Why are you including it? Taxes in Puerto Rico are 11.5%. The cost of an item I am interested in is $21.82 In this particular case, Tax is supposed to be 0.115*21.82 for a total of 2.51 dollars. However, ebay's checkout calculator shows $3.70 tax instead of the correct amount.

Apparently the calculator is including shipping in tax calculations 0.115 (21.82+10.38)=3.70

Please reply to me as soon as possible.

jomir123787

113 View listings

Posted 10 months ago·Last reply 10 months ago

6 comments

stainlessenginecovers

·10 months ago

5484 View listings

@jomir123787 wrote:
Shipping is not supposed to be included in tax calculations. Why are you including it? Taxes in Puerto Rico are 11.5%. The cost of an item I am interested in is $21.82 In this particular case, Tax is supposed to be 0.115*21.82 for a total of 2.51 dollars. However, ebay's checkout calculator shows $3.70 tax instead of the correct amount.

Apparently the calculator is including shipping in tax calculations 0.115 (21.82+10.38)=3.70

Please reply to me as soon as possible.

@jomir123787 So why are you posting, therefore saying, that they are not supposed to be charging tax on shipping when your 'state' clearly does?

kensgiftshop

·10 months ago

389 View listings

@jomir123787

If you're talking about sales tax, Puerto Rico also includes the shipping charges in the amount.

soh.maryl

·10 months ago

110 View listings

Are you referring to state sales tax?

jomir123787

OP10 months ago

113 View listings

Yes. I am referring to the state sales tax.

stephenmorgan

·10 months ago

1219 View listings

@jomir123787 wrote:
Yes. I am referring to the state sales tax.

Does Puerto Rico charge sales tax for shipping services purchased within Puerto Rico for deliver within Puerto Rico? Or do they just charge sales tax for the shipping of items into Puerto Rico?

If it is only sales tax for shipping fees of items shipped into Puerto Rico then talk to your Congressperson about the Commerce Clause and see if the tax expressly treats out-of-state interests less favorably then within Puerto Rico. Maybe you can have the tax struct down as discriminatory.

Unavailable member

·10 months ago

Their profile isn't available.

@jomir123787 wrote:
Shipping is not supposed to be included in tax calculations. Why are you including it? Taxes in Puerto Rico are 11.5%. The cost of an item I am interested in is $21.82 In this particular case, Tax is supposed to be 0.115*21.82 for a total of 2.51 dollars. However, ebay's checkout calculator shows $3.70 tax instead of the correct amount.

Apparently the calculator is including shipping in tax calculations 0.115 (21.82+10.38)=3.70

Please reply to me as soon as possible.

Puerto Rico charges tax on shipping charges as well as the price of the item, so eBay is complying with laws set forth by Puerto Rico. This is for items being shipped to Puerto Rico.

Since this is a purchase you made the state you reside probably charges tax on shipping so you will be charged tax on the price of the item plus shipping. If you have an issue with that take it up with your congressman.

ETA: I did some digging

States that require tax on shipping:

Alaska

Louisiana

Pennsylvania
Arkansas

Minnesota

Rhode Island
Colorado

Mississippi

South Carolina
Connecticut

Nebraska

South Dakota
Florida

New Jersey

Tennessee
Georgia

New Mexico

Texas
Hawaii

New York

Vermont
Illinois

North Carolina

Washington
Indiana

North Dakota

Wisconsin
Kentucky

Ohio

West Virginia