Tax

    Sales tax

    A tax on the sale of goods (and sometimes services) collected from the customer at checkout.

    Definition

    Sales tax rates vary by state, county, and city. Most states tax parts/materials but exempt labor. Hawaii, New Mexico, South Dakota, and West Virginia tax most services. Glo Invoice supports per-line taxability.

    Related terms

    Use tax

    A tax owed on items bought tax-free and used in a state that would normally tax them.

    Exemption certificate

    A document a buyer provides proving they're exempt from sales tax on a purchase.

    Tax nexus

    A connection to a state that obligates you to collect that state's sales tax.