Understanding Sales Tax, Seller’s Use Tax, and Consumer’s Use Tax: Key Differences and Responsibilities

• Sales tax and use tax are indirect taxes applied within the stream of commerce
• Sales tax is collected and remitted by the seller for intrastate sales
• Seller use tax is collected by the seller for interstate sales when they have nexus in the buyer’s state
• Consumer use tax is self-assessed and remitted by the buyer when sales tax is not collected
• Sales tax is charged by the seller and paid by the buyer on taxable goods or services in the same state
• Use tax depends on who holds the responsibility to assess and remit the tax, not physical locations

Source: sovos.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.