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Tax & Compliance
Sales Tax
Definition
A tax charged on retail sales of goods and some services.
Overview
Sales tax is collected by sellers at the point of sale and remitted to the government. In the US, rates vary by state, county, and city.
Example
A product priced at $100 in a state with 8% sales tax costs $108 at checkout.
Best Practices
Know applicable rates for where you sell, collect tax properly, and file returns on time.
Common Mistakes to Avoid
Wrong tax rate
Not collecting when required
Missing nexus requirements
Frequently Asked Questions
Do I need to collect sales tax?
If you sell taxable goods/services and have nexus (physical or economic presence) in a state, usually yes.