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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A photo shows US and Israeli flags projected on the historic walls of the Old City near Hebron Gate in Jerusalem on June 22, 2025. (Getty Images)