Sales Tax Regulations Overview for the USA

Most states (45) in the USA charge a sales tax on goods and services.  These taxes are mostly paid for by the consumer that purchases these goods.  The businesses that sells the goods and services typically collect the sales tax and remits it to the state.

 

Unfortunately, the complexity of the laws in each state, even those that do not impose a state tax, makes it extremely difficult for businesses to calculate the proper tax, record the collection of the tax, and remit the sales tax at the required frequency.

 

The South Dakota vs. Wayfair decision on June 21, 2018, allowing states to tax remote sellers (sellers that do not have a presence in their state) added to the confusion of whether or not a business was responsible for collecting sales tax