At what Point is a Corporate Sales Tax Assessed?

The corporate sales tax creates varying amounts of the tax revenue in different states.  However, the general principle of assessment is almost always the same and therefore can be commented on for the entire country.

Point of Sale

The corporate sales tax is assessed is at the point of sale, or the place where a customer buys an item. This is the collection point. This point of sale tax collection occurs throughout the year, before assessment, as an individual pays sales tax to the corporation.

The corporation acts as a collection agency for the government (usually state government, but possibly local entity as well), and is merely collecting the money for corporate sales tax assessment. The quarterly sales tax adjustment is made based on the amount of goods and/or services sold throughout the year by the corporation.

Point of Assessment

Each business is required to file sales reports with the government, declaring the amount of sales for the quarter of the year and sending in a payment of the taxes due for that quarter. The state government depends heavily on corporate sales tax payments, and they are aggressive in enforcing the tax collection laws.

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