Friday, March 20, 2009

The Golden Rules of Sales and Use Taxes

These are fundamental principles that I've discovered in my years of training folks on this topic. These are things that the books and research materials assume you already know. Now you do. These golden rules are all listed in detail here.

Sales tax is a tax on the transaction

Taxable sales

Which state has jurisdiction over the sale

The ship-from state is irrelevant

Every state does it completely differently

There's an exception to everything

The buyer has the ultimate responsibility

Use tax is imposed even if you've already paid tax

The lumping rule

Be careful about your information sources

The invoice is your record

The rule of taxability


The Basis of Tax


The Four Exceptions

Sales tax and use tax are complementary

There is no sales tax on interstate transactions

The Basis of the Tax

The Seven Factors that determine the taxability of any sale

This is a "master article" that will serve to compile and organize the rest of the articles on this site. There are other master articles that I'll be developing. And they will all be updated regularly.

Sales Tax Guy

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