Consumption tax

From Tax Rates Wiki

Consumption tax is an umbrella term describing what most people think of as sales tax. Other examples of consumption tax include consumer use tax and VAT.

While sales tax is calculated, collected and remitted by the seller, depending on their nexus determination, consumer use tax is other side of the transaction. Use tax reflects the responsibility of the buyer to determine their own requirements for transactional tax, which may be different from those of the seller. If the buyer has a requirement, and the seller has not collected tax, it is up to the buyer to do so.

For example, a consumer in New York purchasing a product online from a California retailer may not be charged sales tax on the purchase, but may still be responsible for reporting and paying the appropriate tax to the state.