If you are a foreign entrepreneur, you may have heard of this term. But do you know what it means? The Sales Tax is a state and local tax that companies that sell physical products to end consumers need to charge these consumers and pass on to the State. Thus, the Sales Tax is not a tax that the company pays but rather a tax that it charges the end consumer and passes on to the State. There are 50 States in the USA. Therefore, there are 50 different laws regarding Sales Tax, and even within their States, some regions also have specific laws.