The United States is a hub for industries and fashion, and many people may have experienced purchasing or importing goods from the country. However, did you know that purchasing items from the U.S. is different from buying goods from other countries? This is due to the presence of a tax called Sales Tax. So, what is Sales Tax, and why is it important? CPL will explain everything you need to know about this tax when buying goods or services in the U.S.

What is Sales Tax?

In Thailand, we are familiar with the Value Added Tax (VAT) system, which is included in the price of goods or services. For example, if you buy an item from a department store priced at 100 Baht, that price already includes VAT. However, in the U.S., when purchasing goods or services, the price shown does not include sales tax (Sales Tax). The sales tax must be added to the item’s price before it becomes the final purchase amount.

For example, if you buy a product in Minnesota priced at $100, you will be charged an additional 7.49% Sales Tax, making the total purchase price $107.49.

Summary of Sales Tax in the U.S.

In Thailand: Sales Price = Product Price + VAT (Already included) = Total Purchase Price

In the U.S.: Sales Price = Product Price + Sales Tax (Based on the state rate) = Total Purchase Price

Sales Tax Rates in Different U.S. States

Lowest Sales Tax (0%): Delaware, Montana, New Hampshire, Oregon

Highest Sales Tax (9.55%): Louisiana, Tennessee

Other States:

• California: 8.82%
• Florida: 7.01%
• Minnesota: 7.49%
• New Jersey: 6.60%
• New Mexico: 7.84%
• New York: 8.52%
• Texas: 8.20%

Example of Calculating Sales Tax

From New Jersey: If you buy a product for $200, with a Sales Tax of 6.60%, the total cost will be $200 + (6.60% of $200) = $213.70.

From Oregon: If you buy a product for $200, with a Sales Tax of 0%, the total cost will remain $200.

As you can see, buying from Oregon would cost you less than buying from New Jersey due to the difference in Sales Tax rates. However, when purchasing items, it’s important to consider other factors beyond just the Sales Tax.

Why You Should Understand Sales Tax For those who plan to import goods from abroad, including online sellers or business owners, understanding Sales Tax is important for estimating your costs. Whether you are importing goods from the U.S. or other countries, or need more information about Sales Tax, CPLINTER can assist you with all the details. Contact CPLINTER: Phone: 02-519-4426, 063-519-4426, 091-519-4426 Line: @cplinter Visit our website for more details: www.cplinter.com