Definition of Sales tax:
A tax on sales or on the receipts from sales.
Ad valorem tax levied on sale of goods or services. Unlike a value added tax (VAT, levied only on the net increase in price at every point a good or service moves from one seller to the next purchaser) sales tax is a cost and involves double taxation (tax on tax) because it is imposed on the gross price (sellers net cost price + sales-tax paid by the seller + sellers profit) at each point of sale.
How to use Sales tax in a sentence?
- I didnt realize that I had to also pay the sales tax and that made me angry because I only had a little bit of money.
- The traditional tax system of Castile, with its reliance upon sales taxes and a direct tax on the tithe proved ill suited for the natural resource based economy of New Spain.
- There was a sales tax that we had to pay to the state which was only a small amount of money compared to our profits.
- When you are purchasing a lot of a product dont forget to factor in the sales tax to include in part of your budget.
Meaning of Sales tax & Sales tax Definition