Sales Tax 

Sales Tax is a consumption-based tax imposed by governments on the sale of goods and services. It’s collected by businesses at the point of sale and remitted to the taxing authority. Rates and regulations vary widely between jurisdictions, and in some cases, certain items like groceries or medicine may be exempt. 

Key considerations for businesses: 

• Tax Nexus: Determines where a business must collect and remit sales tax based on physical presence, economic activity, or customer base. 

• Tax Rates: Vary by state, city, and product type. 

• Filing Frequency: Depends on the business’s tax liability and the regulations of each tax jurisdiction. 

Maintaining compliance with evolving sales tax laws is crucial, especially for e-commerce and SaaS businesses operating across multiple states or countries.