Accurately categorizing shipping charges is essential for businesses in Kansas to ensure compliance with sales tax laws and minimize unnecessary tax liabilities. Here’s how to correctly separate shipping charges to avoid sales tax in Kansas:

1. Itemize Shipping Charges: Clearly list shipping and handling fees as separate line items on invoices and receipts. This distinction ensures that shipping charges are not inadvertently taxed as part of the sale price of taxable goods.

2. Use Clear Descriptions: Label shipping charges explicitly with terms like "Shipping Fee" or "Delivery Charge" to differentiate them from the cost of the items being sold. Avoid bundling these fees with the product prices without clear separation.

3. Implement Tax Automation Software: Utilize tax automation tools that recognize and categorize shipping charges correctly based on predefined rules. Software like Avalara or TaxJar can automatically apply exemptions to separately stated shipping fees.

4. Configure E-commerce Platforms: Ensure your online sales platforms are set up to display shipping charges separately. Platforms like Shopify, WooCommerce, and BigCommerce offer settings to itemize shipping fees, preventing them from being included in the taxable sale amount.