Use Tax Definition

[stuff4divas]

Decided to share this with anyone who is as confused as me about Use/Sales Tax definition:

Use Tax is defined as a tax on the storage, use, or consumption of a taxable item or service on which no sales tax has been paid. Use tax is a complementary or compensating tax to the sales tax and does not apply if the sales tax was charged.

Taken from>

https://www.salestaxinstitute.com/sales_tax_faqs/the_difference_between_sales_tax_and_use_tax

[pburn]

Functionally, for all intents and purposes, and in the context of eBay buyers and sellers, they are essentially the same thing.

[bar-29368 · Accepted solution]

@stuff4divas 

Just think of this way - Use Tax is what your state calls it when you didn't pay Sales Tax on something because you bought it from outside the state, so they want the $ as if you DID buy it in your state.