- U.S. sales tax is a state and local consumption tax, with rules and rates varying widely across thousands of jurisdictions.
- Most tangible goods are taxable, while essentials like food and medicine may be exempt; taxability of services and digital goods varies by state.
- Businesses must determine where they have nexus (physical, economic, or affiliate presence) to know where to register, collect, and remit sales tax.
- Compliance involves registration, applying correct rates, issuing compliant invoices, and timely filing of returns, even for zero sales.
- The Streamlined Sales & Use Tax Agreement (SSUTA) simplifies compliance in 23 states plus Tennessee, but robust tracking and automation are still essential.
Source: fiscal-requirements.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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