sales tax

  

Definition

Ad valorem tax levied on sale of goods or services. Unlike a value added tax (VAT, levied only on the net increase in price at every point a good or service moves from one seller to the next purchaser) sales tax is a cost and involves double taxation (tax on tax) because it is imposed on the gross price (seller's net cost price + sales-tax paid by the seller + seller's profit) at each point of sale.

Related Videos




http://www.businessdictionary.com/definition/sales-tax.html

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z