Sales & Use Tax: Definitions May Vary By Jurisdiction

By Diane Yetter - Sales Tax is defined as a tax on the sale, transfer, or exchange of a taxable item or service. The Sales Tax generally applies on the sale to the end user or ultimate consumer. The Sales Tax is generally added to the sales price and is charged to the purchaser. Sales Tax in its truest definition applies only to intrastate sales where the seller and the customer are located in the same state. Sales Taxes are considered “trust taxes” where the seller collects the tax from the…