The tax that is levied at the time of end-purchase of any service or any product is referred to as the sales tax. The tax is applicable for all the retail sales, rentals and leases and even on certain services which are deemed as taxable. The tax is generally not applied if the product is purchased for a resale or it is purchased to use for further processing of another product. The tax is normally a percentage that gets added to the cost of the service or the goods which are being bought.
The responsibilities of a business owner, whether you are opening a start up or buying an established business, will vary based on the kind of entity that you own. The estimation of this tax is done at county or municipal levels as well in addition to the state level estimate. The payment will depend on your business’ sales and also the regulations of the state you do the business in.
It is normally the end user of the service or the product who is levied with the sales tax that is the consumers of the product or service. There is exemption for the resellers from sales tax if they do not use the product and are not the end consumers of the product or service.
There are some states which do not levy sales tax. They are,
- New Hampshire