Sales tax

salessales taxesnational sales taxGSTretail sales taxSales and Use Taxtaxgeneral sales taxpurchasepurchases
A sales tax is a tax paid to a governing body for the sales of certain goods and services.wikipedia
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A sales tax is a tax paid to a governing body for the sales of certain goods and services.
Since governments also resolve commercial disputes, especially in countries with common law, similar arguments are sometimes used to justify a sales tax or value added tax.

Use tax

When a tax on goods or services is paid to a governing body directly by a consumer, it is usually called a use tax.
It is essentially the same as a sales tax but is applied not where a product or service was sold but where a merchant bought a product or service and then converted it for its own use, without having paid tax when it was initially purchased.

Cook County, Illinois

Cook CountyCookCook counties
For example, sales tax in Chicago (Cook County), IL is 10.25%, consisting of 6.25% state, 1.25% city, 1.75% county and 1% regional transportation authority.
In March 2008, the County Board increased the sales tax by one percent to 1.75 percent.


excise taxexcise taxesexcise duty
Excise taxes, applied to a narrow range of products, such as gasoline or alcohol, usually imposed on the producer or wholesaler rather than on the retail seller.
Excises are typically imposed in addition to an indirect tax such as a sales tax or value-added tax (VAT).

Value-added tax

value added taxVATGoods and Services Tax
Value added tax, in which tax is charged on all sales, thus avoiding the need for a system of resale certificates. Tax cascading is avoided by applying the tax only to the difference ("value added") between the price paid by the first purchaser and the price paid by each subsequent purchaser of the same item.
Confusingly, the terms VAT, GST, consumption tax and sales tax are sometimes used interchangeably.

Gross receipts tax

gross receiptsGeneral Excise Taxgross receipt tax
Gross receipts taxes, levied on all sales of a business. They have been criticized for their "cascading" or "pyramiding" effect, in which an item is taxed more than once as it makes its way from production to final retail sale.
A gross receipts tax is similar to a sales tax, but it is levied on the seller of goods or service consumers.

Indirect tax

indirect taxationindirect taxesindirect
Turnover tax, similar to a sales tax, but applied to intermediate and possibly capital goods as an indirect tax.
An indirect tax (such as sales tax, per unit tax, value added tax (VAT), or goods and services tax (GST), excise, tariff) is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer).

Streamlined Sales Tax Project

Certified Service Provider Platformsstreamlined" interstate use tax
In an effort to reduce the burden of compliance with the tax laws of multiple jurisdictions, the Streamlined Sales Tax Project was organized in March 2000.
The Streamlined Sales Tax Project (SSTP), first organized in March 2000, is intended to simplify and modernize sales and use tax collection and administration in the United States.

Turnover tax

Turnover tax, similar to a sales tax, but applied to intermediate and possibly capital goods as an indirect tax.
Sales tax occurs when merchandise has been sold.


LAState of LouisianaLa.
For Baton Rouge, Louisiana, the tax is 10%, which is 5% each of state & local.
Louisiana has three personal income tax brackets, ranging from 2% to 6%. The sales tax rate is 4%: a 3.97% Louisiana sales tax and a .03% Louisiana Tourism Promotion District sales tax.

Securities turnover excise tax

Securities turnover excise tax, a tax on the trade of securities.
The fourth plank of the plan called for repeal of the state's sales tax and imposition of "a tax on stock transfers at the rate of 4 cents per share."

Consumption tax

consumptionconsumption taxesbroad-based consumption tax
Consumption tax
Consumption taxes are usually indirect, such as a sales tax or a value-added tax.

Internet Tax Freedom Act

The Internet Tax Freedom Act of 1998 established a commission to study the possibility of internet taxation, but the commission did not make any formal recommendations.
If a seller does have a physical presence in a state, then that seller may be required to collect the same state and local sales tax es as those collected on non-Internet sales.

Goods and services tax (Australia)

Goods and Services TaxGSTGoods and Services Tax (GST)
Goods and Services Tax (Australia)
The tax was introduced by the Howard Government and commenced on 1 July 2000, replacing the previous federal wholesale sales tax system and designed to phase out a number of various State and Territory Government taxes, duties and levies such as banking taxes and stamp duty.

Sales taxes in the United States

sales taxstate sales taxsales taxes
Sales taxes in the United States
In the United States, sales tax is governed at the state level and no national general sales tax exists.

Sales taxes in Canada

provincial sales taxPSTGST and PST
Every province in Canada except Alberta has either a Provincial Sales Tax (PST) or the Harmonized Sales Tax (HST), which is a single, blended combination of the GST and PST.
In Canada, three types of sales taxes are levied.


MDState of MarylandMd.
Designing invoices to reduce the taxable portion of a sale transaction. In Maryland, for example, a delivery charge is exempt if it is stated separately from handling and other taxable charges.
Maryland's state sales tax is 6 percent.

Sales tax audit

Sales Tax Audit
A sales tax audit is the examination of a company’s financial documents by a government's tax agency to verify if the proper amount of sales tax has been remitted to the proper authority.

Point of sale

Usually laws allow the seller to collect funds for the tax from the consumer at the point of purchase.

Tax exemption

tax-exemptexemption statustax exempt
Often laws provide for the exemption of certain goods or services from sales and use tax.

Final good

consumer goodsconsumer productsconsumer product
Conventional or retail sales tax is levied on the sale of a good to its final end user and is charged every time that item is sold retail.

Identification (information)

identificationidentifycompany IDs
A purchaser not an end user is usually issued a "resale certificate" by the taxing authority and required to provide the certificate (or its ID number) to a seller at the point of purchase, along with a statement that the item is for resale.

Western Europe

WesternWestWestern European
Countries in Western Europe, especially in Scandinavia, have some of the world's highest valued-added taxes.


ScandinavianScandinavian countriesNordic
Countries in Western Europe, especially in Scandinavia, have some of the world's highest valued-added taxes.


Norway, Denmark and Sweden have higher VATs at 25%, Hungary has the highest at 27% although reduced rates are used in some cases, as for groceries, art, books and newspapers.