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Answer Posted / mohammed abdul mohisn( hawalda
A sales tax is a consumption tax charged at the point of
purchase for certain goods and services. The tax is usually
set as a percentage by the government charging the tax.
There is usually a list of exemptions. The tax can be
included in the price (tax-inclusive) or added at the point
of sale (tax-exclusive).
Most sales taxes are collected by the seller, who pays the
tax over to the government which charges the tax. The
economic burden of the tax usually falls on the purchaser,
but in some circumstances may fall on the seller. Sales
taxes are commonly charged on sales of goods, but many
sales taxes are also charged on sales of services.
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