- US sales tax is a consumption tax charged at the final purchase of a product by the end consumer
- Sales tax exists at the state and local levels, with different tax laws and rates in each state
- Businesses need a sales tax permit for each state where they are registered
- Taxable products include tangible goods, professional services, services related to tangible personal property, and software and data processing
- There are sales tax exemptions based on the type of product, use of the product, and type of buyer
- Nexus refers to a commercial connection in a state, determining whether a business is liable for taxes there
- Sales tax is calculated as a percentage of the total taxable purchase and varies at the state and local levels
- The Streamlined Sales Tax Governing Board aims to simplify and standardize the sales tax system across the US
- Steps to comply with US sales tax system include getting a Federal Tax ID, registering for sales tax, determining customer locations, applying sales tax, sending proper tax invoices, and filing sales tax returns
- Non-US businesses should not ignore US sales tax laws, as state agencies are cracking down on non-compliance
- Using a cloud-based accounting tool can help automate the US sales tax process and keep records safe online.
Source: quaderno.io
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
