In Maine, shipping charges are subject to sales tax based on how they are presented in the transaction:

When Shipping Charges are Taxable:

• Included in Sale: If shipping costs are included in the sale of taxable goods, the entire amount (goods plus shipping) is subject to the 5.5% sales tax rate.

• Bundled Charges: When shipping is not separately stated and is part of the taxable sales price, it is considered part of the taxable amount.

When Shipping Charges are Not Taxable:

• Separately Stated: If shipping charges are listed separately on the invoice and occur after the sale, they may not be considered part of the taxable sales price, thus not subject to sales tax.

Handling Invoicing:

1. Separate Shipping Charges:

   Clearly itemize shipping charges on invoices to differentiate them from the taxable sale of goods.

   Ensure that shipping is listed as a separate line item if it should not be taxed.

2. Bundled Shipping Charges: If shipping is included in the sale price and not separately stated, apply sales tax to the total amount.

3. Accurate Documentation: Maintain accurate invoicing records showing how shipping charges are handled, supporting whether they are taxed or exempt.

4. Compliance with Guidelines: Follow Maine Revenue Services’ current guidelines on taxability of shipping to ensure correct application.

5. Consultation: When in doubt, consult with a tax professional or MRS to clarify the taxability of specific shipping arrangements.