> ## Documentation Index
> Fetch the complete documentation index at: https://developer.zamp.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Shipping and Handling

> Allow Zamp to take the headache out of shipping and handling taxability.

# Overview

The taxability of both shipping and handling can have significant differences between states. Zamp maintains taxability logic within our tax engine. So it can be handled automatically, for every transaction.

## Endpoints Used

```text theme={null}
POST /calculations
POST /transactions
```

## Properties

```text theme={null}
shipping
handling
shippingHandling
line.items.shipping
line.items.handling
line.items.shippingHandling
```

## Why this is Important

The distinction between shipping and handling costs and their taxability depends on where a given transaction is being sent. Businesses who define shipping and handling separately can pass that information through our APIs, allowing for the most accurate taxability handling.

<Note>
  When building an integration, be wary of shipping being sold as a stand-alone item, instead of being passed with the transaction-level shipping property. See **Standalone Shipping** for more information.
</Note>

## Implementation Suggestions

* Pass shipping and handling separately if possible. Otherwise, provide the aggregate for transactions or line items respectively.
  * States can have different taxability rules for shipping and handling, like California. There are risks to only passing `shippingHandling`.
* Ensure line item shipping and handling costs for items are included within the `lineItems`, and not at the transaction level.
* If a customer’s business has different types of shipping and handling services, or handling services similar to professional services, the best practice should be mapping Product Tax Codes. This is primarily based on **shipping service after the sale of tangible personal property is complete**. See **Standalone Shipping** for more information.

## California Itemized Shipping and Handling Example

<CodeGroup>
  ```json Request theme={null}
  {
      "id": "testTransaction123",
      "total": 100,
      "currency": "USD",
      "entity": null,
      "purpose": null,
      "shipping": 10, //Itemized Shipping
      "handling": 10, //Itemized Handling
      "shippingHandling": 0,
      "subtotal": 80,
      "lineItems": [
          {
              "id": "1",
              "amount": 80,
              "quantity": 1,
              "productSku": null,
              "productName": "Test Item",
              "productTaxCode": "R_TPP"
          }
      ],
      "transactedAt": "2026-03-24T00:00:00.000Z",
      "shipToAddress": {
          "zip": "95814",
          "city": "Sacramento",
          "line1": "1315 10th St",
          "state": "CA",
          "country": "US"
      },
      "shipFromAddress": {
          "zip": "95814",
          "city": "Sacramento",
          "line1": "1 10th St",
          "state": "CA",
          "country": "US"
      }
  }
  ```

  ```json Response theme={null}
  {
              "lineItemId": "1",
              "state": "CA",
              "sourcing": "INTRA_ORIGIN",
              "jurisdictionCode": "CA.S.06",
              "jurisdictionName": "CALIFORNIA",
              "jurisdictionDivision": "STATE",
              "compositeCode": "CA.X.705",
              "compositeName": null,
              "exceptionCode": "SHIPPING", //State-level Shipping
              "ancillaryType": "SHIPPING",
              "taxableAmount": 0,
              "nontaxableAmount": 10,
              "excludedAmount": 0,
              "taxRate": 0,
              "taxDue": 0,
              "taxCollected": 0
          },
          {
              "lineItemId": "1",
              "state": "CA",
              "sourcing": "INTRA_ORIGIN",
              "jurisdictionCode": "CA.S.06",
              "jurisdictionName": "CALIFORNIA",
              "jurisdictionDivision": "STATE",
              "compositeCode": "CA.X.705",
              "compositeName": null,
              "exceptionCode": null,
              "ancillaryType": "HANDLING", //State-level Handling
              "taxableAmount": 10,
              "nontaxableAmount": 0,
              "excludedAmount": 0,
              "taxRate": 0.0625,
              "taxDue": 0.625,
              "taxCollected": 0
          },
          {
              "lineItemId": "1",
              "state": "CA",
              "sourcing": "INTRA_ORIGIN",
              "jurisdictionCode": "34",
              "jurisdictionName": "SACRAMENTO COUNTY",
              "jurisdictionDivision": "COUNTY",
              "compositeCode": "CA.X.705",
              "compositeName": null,
              "exceptionCode": "SHIPPING", //County-level Shipping
              "ancillaryType": "SHIPPING",
              "taxableAmount": 0,
              "nontaxableAmount": 10,
              "excludedAmount": 0,
              "taxRate": 0,
              "taxDue": 0,
              "taxCollected": 0
          },
          {
              "lineItemId": "1",
              "state": "CA",
              "sourcing": "INTRA_ORIGIN",
              "jurisdictionCode": "34",
              "jurisdictionName": "SACRAMENTO COUNTY",
              "jurisdictionDivision": "COUNTY",
              "compositeCode": "CA.X.705",
              "compositeName": null,
              "exceptionCode": null,
              "ancillaryType": "HANDLING", //County-level Handling
              "taxableAmount": 10,
              "nontaxableAmount": 0,
              "excludedAmount": 0,
              "taxRate": 0.01,
              "taxDue": 0.1,
              "taxCollected": 0
          },
          {
              "lineItemId": "1",
              "state": "CA",
              "sourcing": "INTRA_DESTINATION",
              "jurisdictionCode": "CA.D.DTT.067",
              "jurisdictionName": "SACRAMENTO COUNTY",
              "jurisdictionDivision": "DISTRICT",
              "compositeCode": "705",
              "compositeName": "SACRAMENTO COUNTY : SACRAMENTO - 705",
              "exceptionCode": "SHIPPING", //District-level Shipping
              "ancillaryType": "SHIPPING",
              "taxableAmount": 0,
              "nontaxableAmount": 10,
              "excludedAmount": 0,
              "taxRate": 0,
              "taxDue": 0,
              "taxCollected": 0
          },
          {
              "lineItemId": "1",
              "state": "CA",
              "sourcing": "INTRA_DESTINATION",
              "jurisdictionCode": "CA.D.DTT.067",
              "jurisdictionName": "SACRAMENTO COUNTY",
              "jurisdictionDivision": "DISTRICT",
              "compositeCode": "705",
              "compositeName": "SACRAMENTO COUNTY : SACRAMENTO - 705",
              "exceptionCode": null,
              "ancillaryType": "HANDLING", //District-level Handling
              "taxableAmount": 10,
              "nontaxableAmount": 0,
              "excludedAmount": 0,
              "taxRate": 0.005,
              "taxDue": 0.05,
              "taxCollected": 0
          },
          {
              "lineItemId": "1",
              "state": "CA",
              "sourcing": "INTRA_DESTINATION",
              "jurisdictionCode": "CA.D.DTT.06764000",
              "jurisdictionName": "SACRAMENTO CITY (SACRAMENTO COUNTY)",
              "jurisdictionDivision": "DISTRICT",
              "compositeCode": "705",
              "compositeName": "SACRAMENTO COUNTY : SACRAMENTO - 705",
              "exceptionCode": "SHIPPING",
              "ancillaryType": "SHIPPING",
              "taxableAmount": 0,
              "nontaxableAmount": 10,
              "excludedAmount": 0,
              "taxRate": 0,
              "taxDue": 0,
              "taxCollected": 0
          },
          {
              "lineItemId": "1",
              "state": "CA",
              "sourcing": "INTRA_DESTINATION",
              "jurisdictionCode": "CA.D.DTT.06764000",
              "jurisdictionName": "SACRAMENTO CITY (SACRAMENTO COUNTY)",
              "jurisdictionDivision": "DISTRICT",
              "compositeCode": "705",
              "compositeName": "SACRAMENTO COUNTY : SACRAMENTO - 705",
              "exceptionCode": null,
              "ancillaryType": "HANDLING",
              "taxableAmount": 10,
              "nontaxableAmount": 0,
              "excludedAmount": 0,
              "taxRate": 0.01,
              "taxDue": 0.1,
              "taxCollected": 0
          }
  ```
</CodeGroup>

### Results

* In California, shipping is not taxable if “your invoice clearly lists delivery, shipping, or postage as a separate charge” ([<u>CDTFA Shipping and Delivery Charges</u>](https://cdtfa.ca.gov/formspubs/pub100/applying-sales-tax.htm)).
  * In the above example, you can see that Zamp has determined that shipping is not taxable, denoted by:
    * `"exceptionCode": "SHIPPING"`
  * You can also see that handling is taxable, denoted by:
    * `"ancillaryType": "HANDLING" where "exceptionCode": null`

## Standalone Shipping

Businesses often provide shipping, or courier services, as a separate service. In this case, it should behave more as a standalone item, instead of just a shipping charge when it is added after the sale of tangible personal property is complete.

Businesses often provide shipping, or courier services, as a separate service. In this case, it should behave more as a standalone item, instead of just a shipping charge when it is added after the sale of tangible personal property is complete.

### How to Handle

This scenario is as simple as passing shipping as its own `lineItem` with a `productTaxCode` .

| Relevant Tax Code | Name            | Description                                                                                                                                                                                                           |
| ----------------- | --------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Z-SRV500          | Courier Service | Third party courier services occur when a person purchases a shipping service after the sale of tangible personal property is complete. Courier services are independent from the sale of tangible personal property. |
