Question

If you provide a service and sell some tangible goods, you are generally required by state and municipal laws to collect a tax.

a. True
b. False

Answer 1

The correct answer is A. True.

A salesman/shop-owner is required by the state to pay what is called the VAT, or the value added tax, sometimes referred to as the sales tax.

Answer 2

The statement: "If you provide a service and sell some tangible goods, you are generally required by state and municipal laws to collect a tax," is true.

The sales tax is a levy imposed on the retail sale, rental or lease of many goods and services at a rate of 7%. Any sale is a retail sale if the property or service sold will be used and not resold in the regular course of business. The vendo collects the tax and it is remitted directly to the state.