Place of Supply

The Place of Supply refers to the location where a transaction is considered to occur, which determines tax obligations, particularly for goods and services. It is crucial for deciding which tax laws apply and where taxes should be paid. For example, if a product is sold online, the Place of Supply helps identify whether sales tax or value-added tax applies based on the buyer's or seller's location. Understanding this concept ensures compliance with tax regulations and helps businesses manage their financial responsibilities effectively.