Ideally, a sales bite is fair, has a alpine compliance rate, is difficult to avoid, is charged exactly once on any special item, and is simple to calculate and simple to collect. A conventional or retail sales duty attempts to achieve this by charging the tax only on the final head user, Sales and Use Tax unlike a gross receipts tax levied on the compromising vocation who purchases materials for production or natural operating expenses prior to delivering a service or brew to the marketplace.
A related type of contribution is the value-added tax or VAT. It is a system in which all businesses remit taxes on their sales but they are also refunded the mess of VAT remitted by their suppliers. In adding to avoiding cascading, under VAT there is no itch for government to determine which sales are taxable and which are not, since all sales--retail, general and intermediate--are taxed.
