Understanding use tax

Use tax is defined as a tax on the storage, use or consumption of a taxable item or service on which no sales tax has been paid. A complementary or compensating tax to the sales tax, it’s required to be paid by the buyer in cases where the seller does not collect sales tax. Use tax or sales tax is due on a sale, but not both.

Use tax was designed to level the field of tax collection on transactions no matter where a buyer shops.

Source: taxconnex.com

---

---