The Sales Tax - Use Tax Page

This seminar covers the basics.  In just one hour, we'll review the fundamental structure of how sales and use tax works - the Golden Rules.  This seminar is largely about giving you some definitions, and some explanations for why it works the way it does.  While it won't be a prerequisite, it is a very good basis for any other training that you take.

Sales tax and use tax explained

How sales tax is a tax on the transaction.  But use tax is a tax on the use of what was purchased in the transaction.  And why you don't owe both taxes, but it's the buyer's job to figure it out. 

The four reasons why use tax was invented

Why there are so many exceptions to sales and use tax laws

Taxable sales explained

• Including sales of service
• Definition of tangible personal property
• Definition of a retailer 
• Occasional sales
• Who is the end user

The four major exceptions to the fundamental rule of taxability

Two fundamental types of sales and how their taxability varies enormously

• Intrastate sales
• Interstate sales

Why you may have to worry about use taxes in more than one state

How to tell what state has jurisdiction over a transaction

Why you have to worry about nexus

Record keeping

• Why holding on to the invoice is critical
• Why the auditor spends so much time reviewing those invoices
• What you need to convince your boss, your customers and vendors, and the auditor