Understanding Consumer Use Tax: What Online Sellers Need to Know

• Sales tax is a transaction tax paid by consumers at local retailers
• Vendor use tax is paid on purchases made from out-of-state retailers
• Consumer use tax is paid directly to the state by the purchaser when sales tax is not charged
• Consumer use tax has been around since the 1950s
• Consumer use tax is due on items purchased from vendors who did not charge tax
• Consumer use tax is typically reported and paid with sales or vendor use tax returns
• Items subject to sales tax locally are also subject to consumer use tax if purchased online
• Compliance for consumer use tax is a critical issue for remote retailers

Source: taxjar.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.

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