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I have a product for which I have NOT selected the "Sales Tax, VAT" option, yet when I process an order for that item, tax is still being added...

I've figured it out, and the problem is with a new feature that was recently added.

You recently added the ability to compute the tax based on the product price PLUS the shipping and handling charge. (Thanks by the way, that was a helpful feature!)

The problem is, it computes tax on shipping and handling regardless of whether you have selected tax to be applied to that individual item. There needs to be a way for it to check to see if that product has selected the "Sales Tax, VAT" option for the product, and if that option hasn't been selected, then it shouldn't charge tax on the product OR the shipping and handling.

Currently, it won't charge the tax on the product, but it will charge tax on the shipping and handling.

I'm hoping this can get resolved as the current functionality doesn't work correctly.

Thanks!

Just to clarify, are you saying that taxable Shipping and Handling legally become tax-exempt when the product being shipped is tax-exempt?

I'm just asking, because our understanding was that S+H is considered a taxable service (in jurisdictions which tax S+H), independently and regardless of whether the items being shipped are taxable or not -- i.e., the product itself and the S+H service are separate purchase-items which bear no relation to each other in terms of taxation. Perhaps you could clarify how we might be mistaken in that regard?

Hmmm... As I think about it, you are probably right. The state probably would charge tax on shipping and handling even if the item itself wasn't taxable. I was a little weirded out as I'm selling items wholesale, but I noticed tax was appearing. Probably not a big deal. Thanks for the reply.