In the context of sales tax, who is responsible for its collection?

The retailer is responsible for the collection of sales tax because they are typically the point of sale where the transaction occurs. When a consumer purchases goods or services, the retailer adds the applicable sales tax to the total price and collects it from the consumer at the time of sale. This collected tax is then remitted to the government by the retailer.

This system is designed to streamline tax collection, eliminating the need for the consumer to handle their own tax payments directly, thus ensuring a more efficient flow of revenue to the government. Retailers are also tasked with understanding and applying the correct tax rates based on the type of goods sold and the location of the sale, since sales tax rates can vary significantly by jurisdiction. By centralizing the responsibility with retailers, the process of collecting sales tax becomes more manageable for both consumers and the government.