- Sales tax is a tax added to the price of goods and services at the point of sale
- Use tax is a tax on the use, storage, or consumption of goods within a state when sales tax has not been collected
- Use tax is important for capturing tax revenue on out-of-state purchases and leveling the playing field between in-state and out-of-state sellers
- The primary purpose of use taxes is to prevent tax evasion and ensure states can collect revenue on goods and services used within their borders
- Sales tax is collected by the seller at the point of sale, while use tax is the responsibility of the buyer
- Sales and use taxes work together to ensure all transactions are taxed appropriately and maintain a consistent tax revenue stream for states
Source: taxually.com
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.
