Tax
Sales tax
Sales tax is a US state and local tax on retail sales of goods and some services, collected by the seller from the buyer and remitted to the state. Sales tax is administered by states rather than the IRS, and rates and taxability rules differ by state and locality.
In plain terms: Tax you collect from customers on behalf of a state and pass on.
Why it matters
It is not your money at any point, which is why getting it wrong is serious: uncollected sales tax becomes a liability of the business, payable out of margin you never charged for.
Common misunderstanding
Confusing it with income tax. They are separate systems with separate authorities, thresholds and returns.
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