Should we charge our customers sales tax on billed fuel surcharge fees? Does this vary by state?

While it depends on the sales tax law of each state, fuel surcharges can be taxable. According to information posted on the Colorado Department of Revenue and New Jersey Department of Revenue, a fuel surcharge is only taxable if the original purchase is subject to tax. For example, if the surcharge is included on an invoice that is already subject to tax, then so is the fuel surcharge. If the invoice is not subject to sales tax, then no sales tax is due on any fuel surcharges. This rule appears to be consistent throughout the states, but you should check with your particular state to verify.

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