What is Sales Tax and Why Do I Have to Pay It - ENGAGE CPAs

Sales tax is a tax imposed by the state and/or local government on the sale of goods and services. This is a tax that you collect from your customer at the time of the sale, and are then in charge of remitting to the government agency.
This is NOT a tax on you or your income. You are simply the agent in the transaction. You are in charge of collecting the tax from your customer at the time of the sale and then pay it to the state or local government (usually quarterly or monthly).
Sales tax is NOT an additional income tax to you or your business. In fact, most governments offer a discount if you file and pay your sales tax timely, so it's actually a way for you to make a few extra bucks. Each state is very different in terms of which goods and services they charge sales tax on, and how much, so this is something you want to understand fully when considering how it affects your business.
If you are found to not be properly charging sales tax, the state can come after you as the business owner for the sales tax amounts that they would have been owed, so it's very important to stay compliant and remit every dollar that you collect.

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Thank you!