The Sales Tax for Fulfillment Service Fees feature allows eligible fulfillment service fees to be included in sales tax calculations for new quotes. This helps ensure products and supported services are taxed consistently using your existing tax configuration.
📍 What Service Fees Are Supported?
When this feature is enabled, sales tax is automatically calculated for the following fulfillment service fees:
Delivery charges
Trip charges
Pricing zone fees
Haul-away fees
Installation charges
These fees are taxed using the same tax rules that apply to taxable products.
If a customer is marked as Tax Exempt, the exemption also applies to all supported fulfillment service fees.
⚙️ How Fulfillment Service Taxation Works
After fulfillment service taxation has been enabled, Appliance.io automatically includes all supported fulfillment service fees whenever it calculates sales tax for newly created quotes.
The feature follows a blanket taxation model, which means:
All supported fulfillment service fees are taxed together.
Individual fee types cannot be enabled or disabled separately.
Existing product tax rules continue to apply without changes.
Existing tax exemption rules remain unchanged.
For example, if a quote contains:
A taxable refrigerator
A delivery charge
An installation charge
Sales tax is calculated across all eligible taxable products and supported fulfillment service fees based on your existing sales tax configuration.
🛠️ Configuring Fulfillment Service Taxation
Fulfillment service taxation is controlled using a single configuration setting.
When enabled:
Sales tax is applied to all supported fulfillment service fees.
Products continue using your existing sales tax configuration.
Tax exemption behavior remains unchanged.
All supported fulfillment service fees are taxed together.
At this time, Appliance.io does not support configuring tax rules separately for individual fulfillment service fee types.
📝 Quote Behavior
This feature only affects new quotes created after fulfillment service taxation has been enabled. Quotes created before the feature was enabled continue using their original tax calculations and are not automatically recalculated.
Similarly, orders that were created from those existing quotes remain unchanged.
🚫 Tax Exempt Customers
Tax exemption behavior remains exactly the same.
If a customer is marked as Tax Exempt:
Sales tax is not applied to taxable products.
Sales tax is not applied to supported fulfillment service fees.
No additional configuration is required.
⚠️ Current Limitations
The current release does not support:
Configuring tax rules separately for individual fulfillment service fee types
State-, province-, or jurisdiction-specific fulfillment service tax settings within Appliance.io
Advanced tax rules based on fulfillment service categories
All supported fulfillment service fees are managed through one blanket taxation setting.
💡 Important Notes
Keep the following in mind when using this feature:
The feature only applies to new quotes created after it has been enabled.
Existing quotes and orders keep their original tax calculations.
Businesses operating in jurisdictions where fulfillment services are taxable may notice higher sales tax totals.
Tax-exempt customers remain exempt from taxes on supported fulfillment service fees.
All supported fulfillment service fees are taxed together and cannot be configured individually.
🎉 You're All Set!
Once enabled, Sales Tax for Fulfillment Service Fees automatically includes supported fulfillment service fees in sales tax calculations for all new quotes. Existing quotes and orders remain unchanged, while tax-exempt customers continue to receive the appropriate exemptions.