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鈥檚 location, and in the destination-based model, the tax rate and rules are those in the buyer鈥檚 location. This report compares the two models.
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US President Donald Trump reacts after signing executive orders imposing tariffs on imported goods in the Rose Garden at the White House on April 2, 2025, in Washington, DC. (Andrew Harnik via Getty Images)