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Why is sales tax collected for commercial card transactions? (Merchant Service)

Collecting sales tax at the point of sale helps companies enrolled in commercial credit card programs ensure that they are paying the correct sales tax for goods purchased. Some companies also use this information to simplify their sales tax preparation.

The sales tax data you submit is sent to Visa or MasterCard. The card association then reports the information to the cardholder's company, along with the other transaction details. The information is never shared with tax agencies.

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