What is Sales Tax in Retail? Explained

Sales tax is a consumption tax levied by governments on the sale of goods and services. Usually calculated as a percentage of the purchase price, it's collected by retailers during the transaction and later remitted to the respective government authority. Rates and regulations vary by location, with specific rates for different goods. Retailers bear the responsibility of adhering to local tax laws, ensuring accurate tax calculation, and promptly remitting collected taxes to the appropriate authorities.