Define: Sales Tax

Sales tax is a tax imposed by the government on the sale of goods and services. It is usually a percentage of the purchase price and is collected by the seller at the time of sale.

Sales tax is calculated by multiplying the purchase price of a product or service by the applicable tax rate. The tax rate can vary depending on the jurisdiction, and it is typically expressed as a percentage.

No, not all products and services are subject to sales tax. The taxability of goods and services can vary by jurisdiction. Some items, such as groceries or prescription medications, may be exempt from sales tax in certain states.

Yes, online purchases can be subject to sales tax. The Supreme Court ruled in 2018 that states can require online retailers to collect sales tax, even if they do not have a physical presence in the state.

In general, sales tax is not refundable. Once it is paid to the government, it is considered a final payment. However, there may be certain circumstances where a refund can be obtained, such as if the tax was overpaid or if the purchase was returned.

Yes, sales tax rates can change. State and local governments have the authority to change the tax rates, and they may do so periodically to meet their budgetary needs or to fund specific projects.

Sales tax cannot be avoided legally. It is a mandatory tax imposed by the government, and failure to collect or pay sales tax can result in penalties and legal consequences.

In some cases, sales tax can be deducted on income tax returns. This is an option for taxpayers who itemize their deductions instead of taking the standard deduction. However, it is important to consult with a tax professional to determine if you are eligible for this deduction.

Yes, sales tax can be charged on shipping and handling fees if they are considered part of the sale. However, if the shipping and handling fees are separately stated and not part of the purchase price, they may be exempt from sales tax.

Sales tax cannot be negotiated or waived by individual sellers. The tax rate is determined by the government, and sellers are required to collect and remit the tax to the appropriate authorities.