When are customers charged sales tax on each phone ordered?

When are customers charged sales tax on each phone ordered?

• A. On the date of order
• B. With the monthly bill
• C. At activation
• D. When it ships from the AT&T warehouse

Answer: (D)

Sales tax is charged when the device leaves the warehouse and is shipped to you. That moment marks the completion of the sale for the hardware, so the tax is calculated on the device price at shipment and appears on the shipment or first bill reflecting that shipment. It isn’t charged when you place the order, nor as part of the monthly service bill, and it isn’t charged at activation, since activation only enables service and the tax on the hardware is tied to the point of sale at shipment. The tax rate used is based on the ship-to address.

Sales tax is charged when the device leaves the warehouse and is shipped to you. That moment marks the completion of the sale for the hardware, so the tax is calculated on the device price at shipment and appears on the shipment or first bill reflecting that shipment. It isn’t charged when you place the order, nor as part of the monthly service bill, and it isn’t charged at activation, since activation only enables service and the tax on the hardware is tied to the point of sale at shipment. The tax rate used is based on the ship-to address.