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Sales tax

What is sales tax?

Sales tax is a government levy imposed on the sale of goods and services. Essentially, it's an additional amount of money that consumers pay when making purchases, which businesses collect and then pass onto the government.

The exact rules for sales tax vary widely by country and even within regions of the same country. In the US, for example, sales tax rates and regulations are primarily set at the state level, so a business might need to manage different sales tax requirements in different states. It's important for businesses to understand their sales tax obligations to avoid penalties and audits. E-commerce businesses should be particularly mindful of sales tax, as selling to customers in different states or countries can complicate their tax obligations.

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