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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Secretary of State Marco Rubio speaks to reporters after watching people board a repatriation flight bound for Colombia in Panama City on February 3, 2025. (Mark Schiefelbein/AFP via Getty Images)