I purchase products and resell them, adding services that relate to computers and technology. For example, I might purchase a laptop, install custom software and settings according to my customer's industry.
In the course of such a transaction, I incur expenses for the product, its shipping, and sometimes tax (I am not set up as a non-taxable reseller in this example).
When I bill my customer, I've been struggling with the "correct" way to handle the shipping charges. I charge tax on the product, which is not marked up. I charge tax on my time as a service. Finally, I add the shipping costs as a non-taxable item to the invoice.
Is this the accepted way to handle shipping charges?
Background: I am more of a programmer than a businessperson. I use Quickbooks online and have a very small customer base.
