A sales tax is a tax paid to a governing body by a seller for the sales of certain goods and services. Usually laws allow (or require) the seller to collect funds for the tax from the consumer at the point of purchase.
Laws may allow sellers to itemized the tax separately from the price of the goods or services, or require it to be included in the price (tax-inclusive). The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale.
When a tax on goods or services is paid to a governing body directly by a consumer, it is usually called a use tax.
Often laws provide for the exemption of certain goods or services from sales and use tax.
Read more about Sales Tax: Types, Effects, Sales Tax Avoidance
Famous quotes containing the words sales and/or tax:
“Make friends with the angels, who though invisible are always with you.... Often invoke them, constantly praise them, and make good use of their help and assistance in all your temporal and spiritual affairs.”
—St. Francis De Sales (1567–1622)
“Rumble thy bellyful! Spit, fire! Spout, rain!
Nor rain, wind, thunder, fire are my daughters.
I tax you not, you elements, with unkindness;
I never gave you kingdom, called you children.”
—William Shakespeare (1564–1616)