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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President Donald Trump holds up a copy of a 2025 National Trade Estimate Report as he speaks at an event at the White House on April 2, 2025, in Washington, DC. (Getty Images)