sales tax

A tax placed by a state or municipality on items at the time of their purchase. It may be a tax on the sale of an item every time it changes hands (value added tax, VAT), or only upon its transfer of ownership at one specific time.
In the case of a VAT, the sales of manufacturers are taxed when the items are considered to be completed goods; the sales of wholesalers are taxed when their goods are sold to retailers; and retail sales are taxed when the goods are purchased by consumers. See value added tax.

Was this article helpful?

Related Articles

Need Support?

Can't find the answer you're looking for?
Contact Support