Taxability Matrix

A Taxability Matrix is a tool used to determine whether a particular product or service is taxable in different jurisdictions. It outlines the tax status for various items, showing which are subject to sales tax and which are not. Businesses use this matrix to ensure compliance with tax laws when selling across different states or localities, as tax rules can vary significantly. By consulting the matrix, companies can accurately assess their tax responsibilities and avoid potential legal issues with tax authorities.