Sales Tax on Shipping

Well, there is. Use one item code for intra state and one for inter state shipping charges. Then set one to be taxable and one non taxable.

Seriously, there are usually so many combinations of possibilities in tax law that only a human can make a decision on if a particular line item is or is not subject to sales and use tax.

You'll likely find once you read a bit more about transportation charges in your states sales tax code that if you don't mark them up over your cost that sales tax doesn't apply. How is QB supposed to know that and automate it? Also it may be different if you use your own truck to deliver vs having the Post Office deliver. Again how is QB supposed to know this?

Sorry, you have to teach the people who create your invoices and sales receipts about your state's sales tax law in all its gory detail. Your state may offer a class in this, so call your state sales tax people and ask them if they do.

It may be a moot point if you are only collecting sales tax in your own state anyway. In that case, your sales tax item such as "Out of State Sales Tax" would have a zero rate. But in reality, I agree with LoggJamm that it's highly unlikely that the state expects you to pay sales tax on that portion of the shipping charge that is a reembursement of your third party shipping cost. Charging sales tax on any excess IS a taxable issue, but considering the minor amounts in question, I'd ignore collecting tax on it. (assuming your average pass through is reasonably close to your average cost) The last time I had a sales tax audit, they were so busy loking for the big stuff, they consciously ignored things like this and did not even ask me to fix it for the future. The auditors are much more sympathetic to your difficulties in compliance than are the friggin' morons who vote on all this complicated code (and never read it before voting on it).

Craig