UNX News Magazine
  • Home
  • Business
  • Education
  • Finance
  • Health
  • Home
  • Real Estate
  • Shopping
  • Sports
  • Tech
  • More
    • Auto
    • Law
    • Travel
No Result
View All Result
  • Home
  • Business
  • Education
  • Finance
  • Health
  • Home
  • Real Estate
  • Shopping
  • Sports
  • Tech
  • More
    • Auto
    • Law
    • Travel
UNX News Magazine
No Result
View All Result

How does sales tax work in the U.S.?

Hailey Cady by Hailey Cady
3 years ago
in Finance
0
How does sales tax work in the U.S.?
0
SHARES
29
VIEWS
Share on FacebookShare on Twitter

In pretty much every country across the globe, you will find some sort of taxes on things like products and services. A lot of countries opt for VAT – value added tax, which is collected by all sellers in each stage of the supply chain – every person pays VAT. In the U.S., however, things are done differently – sales tax is used instead.

SALES TAX CALCULATOR

What exactly is sales tax?

Sales tax is a type of consumption tax similar to VAT, that’s imposed by the government on the sales of goods and services. There is a conventional sales tax which is levied at the point of sale, collected by the retailer and passed on to the government. Sometimes businesses also have to pay sales taxes if they have a nexus in a given jurisdiction, depending on the laws there.

Sales tax basics

Retail sales taxes are generally charged only to the end user of a service or product. 

Businesses can be taxed if they aren’t careful about the way they handle taxes – especially when it’s a good: the majority of goods go through lots of manufacturing stages before they get to the end product, often by many different entities. If this applies to your business, you’ll need to get a lot of documentation to provide who ultimately is responsible for the sales tax in the end. 

For instance, imagine a potato farmer. This potato farmer would sell to a chip-making company. To avoid paying sales tax on their purchase, the chip-making company needs to obtain a resale certificate, to confirm it is not the end user of the product. The chip-maker could then sell to a supermarket that needs to charge the sales tax to customers, in addition to the price of the chips.

Sales taxes are closely related to use taxes that apply to residents who’ve purchased items from outside their jurisdiction. These taxes are generally set at the same rate as sales taxes but can be more difficult to enforce, and so generally tend to be in practice only for large purchases of goods or a service.

What is a nexus for a business?

A nexus is defined as a physical presence of something. The exact definition of a ‘presence’ isn’t just limited to an actual building, though. It can also mean a business just having an employee or an affiliate in the state. In some states it now also includes having online presence, as ecommerce is starting to become a big thing now. For instance, in New York ‘Amazon laws’ have been passed which require internet retailers like Amazon.com Inc. to pay sales tax, despite not actually being physically in the state.

Registering for sales tax

When you register for sales taxes, you need to firstly get a Seller’s Permit, and find ways to save money on taxes too by getting documents like a Resale Certificate.

Getting a seller’s permit

Any business that sells a good or a service needs a seller’s permit. These permits are given by states. If you can’t find it, it may also be labelled as a ‘Sales Tax Permit’ or ‘Sales Tax Certificate of Authority’. Even if you don’t need to pay taxes you’re still required to get one, so that the state knows where exactly sales tax revenue is coming from.

To register, go to the Department of Revenue for your state, fill in the details and you’re all good to go. In most states this service is fortunately free.

Getting a resale certificate

Going back to what we said before, a resale certificate/permit is great for when purchasing goods with the intention of reselling them. They are simple to get and stop you from having a good get taxed multiple times before reaching the end consumer. The certificate can also be found on your state’s Department of Revenue homepage, and also tends to be free.

To help calculate your sales tax, TRUiC has a useful tool – a sales tax calculator. Visit their site for more.

Previous Post

Quality Sports Games Produced By EA Sports

Next Post

8 Incredible Tips for Using Law of Attraction

Related Posts

How to improve your trading skills

How to improve your trading skills

January 13, 2023
Is the Japanese Yen on the Verge of a Breakdown? – Kavan Choksi

Is the Japanese Yen on the Verge of a Breakdown? – Kavan Choksi

September 30, 2022
Crypto Sector Planning to Spend Over $160M On Sports Sponsorships

Crypto Sector Planning to Spend Over $160M On Sports Sponsorships

March 25, 2022
Finance Tips for People in Their 30s – カヴァン・ チョクシ

Finance Tips for People in Their 30s – カヴァン・ チョクシ

February 18, 2022
Here’s How You Can Get Coverage for Car Damages Due to a Cyclone?

Here’s How You Can Get Coverage for Car Damages Due to a Cyclone?

February 2, 2022
5 Reasons Why Your Car Loan in Brisbane was Denied

5 Reasons Why Your Car Loan in Brisbane was Denied

January 13, 2022
Next Post
8 Incredible Tips for Using Law of Attraction

8 Incredible Tips for Using Law of Attraction

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Top Stories

 Alex Blackwell: Australian Cricketer With Top Talent

 Alex Blackwell: Australian Cricketer With Top Talent

February 2, 2023
The Cricket Bettor’s Guide to Making Wise Bets With These Valuable Tips

The Cricket Bettor’s Guide to Making Wise Bets With These Valuable Tips

February 2, 2023
How to improve your trading skills

How to improve your trading skills

January 13, 2023
Gambling

 Alex Blackwell: Australian Cricketer With Top Talent

Alex Blackwell, a notable batswoman for both New South Wales and Australia, was born on August 31, 1983. She is ...

February 2, 2023
Sports

The Cricket Bettor’s Guide to Making Wise Bets With These Valuable Tips

Introduction Cricket betting can be fun and profitable if you make smart bets. You can make money by betting on ...

February 2, 2023
Finance

How to improve your trading skills

Are you looking to improve your trading skills? Whether you are a day trader, swing trader, or just starting in ...

January 13, 2023
News

How to Keep Your Restaurant Hood Clean

As a restaurant owner, it's important to keep your hood clean and grease-free. A dirty or greasy hood can cause ...

December 9, 2022
Business

Managing Good Debts: Strategies for Better Money Management

Taking on debt doesn't always have to mean falling into a long spiral of bad credit and high-interest rates. In ...

December 6, 2022

Recent Posts

  •  Alex Blackwell: Australian Cricketer With Top Talent January 19, 2023
  • The Cricket Bettor’s Guide to Making Wise Bets With These Valuable Tips January 16, 2023
  • How to improve your trading skills January 13, 2023
  • How to Keep Your Restaurant Hood Clean December 9, 2022
  • Managing Good Debts: Strategies for Better Money Management December 6, 2022

Archives

  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • May 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019

© 2020 UNX News Magazine - All Rights Reserved.

  • Get support

No Result
View All Result
  • Get support
  • Home Layout 1

© 2020 UNX News Magazine - All Rights Reserved.