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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Migrants storm a barbed-wire fence as they attempt to cross the land border with Spain's African enclave of Ceuta near Fnideq in northern Morocco on September 15, 2024. (Getty Images)