Invoicing glossary
Sales tax
Sales tax is a tax on retail sales, added at the point of sale and collected by the seller on behalf of the government.
Sales tax: a clear definition
Common in the United States, sales tax is set by state and local jurisdictions, so the rate depends on where the sale happens. On an invoice it's shown as a separate line on top of the subtotal. (Many other countries use VAT or GST instead.)
How Invco helps
Invco is an AI invoicing assistant that handles sales tax and the rest of your billing for you. Design a custom invoice template, then let Claude create and send invoices on it in plain English — with subtotals, tax, and totals calculated automatically and every invoice tracked from sent to paid. Start free with one company.
- Related terms: VAT (value-added tax), Tax invoice
Frequently asked questions
What is sales tax?
Sales tax is a tax on retail sales, added at the point of sale and collected by the seller on behalf of the government.
What is vat (value-added tax)?
VAT (value-added tax) is a consumption tax added at each stage of the supply chain and ultimately paid by the end customer.
Invoice the easy way with Invco
Let an AI assistant create and send your invoices on a template that looks like your brand. Start free with one company — no credit card required.
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