this post was submitted on 06 Jun 2026
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That's absolutely not true. Businesses pay sales taxes, too. Nonprofits/churches/etc are exempt, but otherwise, every transaction is taxed.
No, that's incorrect. I am very well aware of this. Businesses only have to pay sales taxes on purchases for which they are the end user. They'll pay sales taxes on their office supplies and services provided to the business. But manufacturers do not have to pay sales taxes on the raw materials they purchase. Retailers do not pay sales taxes on wholesale purchases they make for resale. Only the end-user pays the sales tax on a purchase.
I work with a couple vendors that do not collect sales tax at all. They only sell B2B, and they only sell to businesses who provide them with a sales tax exemption certificate.
What you are describing is more akin to Europe's VAT system. Still, under VAT, everyone in the chain pays VAT, and each vendor remits the collected VAT to the tax authority. But, the business-buyer reclaims that VAT from the tax authority if they are not the end-user of the purchased product. Everyone but the end user can reclaim their VAT payment.