Vendor Tax Law

Vendor Tax Law refers to the legal requirements for businesses that sell goods or services to collect and report sales tax on behalf of the government. When a customer makes a purchase, the vendor (the seller) adds a sales tax to the price and collects it. The vendor is then responsible for remitting this tax to the appropriate tax authority. The law aims to ensure compliance with tax regulations and maintain fair competition among businesses. Failure to collect or remit sales tax can result in penalties for the vendor.