- Sales tax and use tax are both forms of indirect taxation
- Sales tax is applied at the point of retail sale to the final consumer
- Sales tax rate varies by location and type of product
- Taxable items include tangible personal property, services, and digital products
- Seller or retailer collects and remits sales tax to the government
- Over 13,000 sales tax jurisdictions in the US make compliance difficult
- Sales tax on digital products depends on type, state of sale, seller’s location, and buyer’s location
- Economic nexus complicates sales tax compliance by triggering tax obligations based on business activities in a state
Source: complyt.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.
