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.

Caption
A robot from AgiBot is seen during the Global Developer Conference, organized by the Shanghai AI Industry Association, in Shanghai on February 21, 2025. (Hector Retamal via Getty Images)