If a seller doesn’t collect sales tax, the consumer might owe use tax, which is similar to sales tax. · Sales tax: This is collected by the seller at the point of purchase and then remitted to the state. The customer pays the sales tax included in the final price. · Use tax: This is a tax on the use of taxable goods or services within a state, but wasn’t collected at the time of purchase. The responsibility falls on the consumer to report and pay the use tax directly to the state.

No. While both are indirect taxes, they differ in how they’re collected: · Sales tax: Charged at the final sale to the consumer. · VAT: Spread throughout the supply chain at each stage of production.

Yes, even without a physical presence in the US. A “nexus” can be established through remote sales. This means a business anywhere in the world selling to US customers might owe sales tax.