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Isn't the end user strictly liable for any applicable use taxes in a state?

Full Question: Isn't the end user strictly liable for any applicable use taxes in a state? If so, in a case where a use tax would apply (selling below cost in some states), does inclusion of a notification with the shipment that the end user is liable for the applicable use taxes mean that the company does not have to pay them?

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Answer:

Diane Yetter photoYes the end user is ultimately responsible for payment of the use tax in most states if the seller did not collect the sales tax from them. However, if the seller maintains a physical presence in the state of delivery such that they have established nexus, then the seller is required to register to collect sales tax and collect the sales tax on the selling price of the products and services that they sell that are subject to tax. Just because the customer has the ultimate liability for the tax does not relieve the seller from their legal obligation to collect the tax when they have nexus.

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