Question

What are the differences between a sales tax and a use tax?


A. A sales tax on goods and services is paid by a region's residents and a use tax is paid by non-residents, both at the point of sale.

B. A sales tax is levied on the purchases of goods while a use tax is levied on the purchases of services.

C. A sales tax is on the purchase of goods and services at the point of sale while a use tax is paid on goods and services purchased when sales tax was not paid.

D. A sales tax is collected when a good or service is purchased by a consumer while a use tax is collected when a good or service is purchased by a businesses.

Answer 1

The major difference between a sales tax and a use tax is that a sales tax on goods and services is paid by a region's residents, and a use tax is paid by non-residents, both at the point of sale.

What is a Sales tax and a Use tax?

A sales tax is a government-imposed consumption tax levied on the selling of products, goods, and services. Sales taxes in the United States are levied on the purchase or leasing of products and services in the country. These taxes are handled at the state level.

However, use tax is a sales tax levied on items purchased outside one's native state on taxable products that will be used or consumed in one's native state upon which zero tax was received in the place of purchase.

Learn more about sales tax and use tax here:

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Answer 2

Correct Answer:

C) A sales tax is on the purchase of goods and services at the point of sale while a use tax is paid on goods and services purchased when sales tax was not paid.

Hope this helps!