A sales tax can be either origin or destination based. In the origin-based model, the tax is the tax rate and rules in the seller’s location, and in the destination-based model, the tax rate and rules are those in the buyer’s location. This report compares the two models.
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Turkey's President Tayyip Erdogan, Japan's Prime Minister Sanae Takaichi, and Indonesia's Vice President Gibran Rakabuming Raka during the G20 Leaders' Summit in Johannesburg, South Africa, on November 22, 2025. (Getty Images)