To illustrate, let’s say you sell some furniture in the amount of $500 with a $40 delivery charge and collect sales tax on each sale. Because the sale is taxable, you must also collect sales tax on the $40 delivery charge.
If the customer gives you a resale certificate or if they are an exempt organization (government or charitable organization), then no tax is collected on either amount.
Like any good CPA, I need to add a disclaimer: Unfortunately, it is impossible to offer comprehensive tax info over the Internet, no matter how well-researched or written. And remember, I love my readers, but having me bookmarked on your computer doesn’t make you a client. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.