Can Your Business Absorb the Sales Tax?

It can pay the consumer’s sales tax instead of collecting it (called absorption) if you’re a retailer in Pennsylvania (as of July 1, 2019) or Texas (October 1, 2019). This option applies to both in-state and remote sellers. According to Avalara, absorption is also allowed in Georgia, Hawaii, Louisiana, Maryland, Massachusetts, Michigan, Missouri, New Mexico, South Carolina, South Dakota, Tennessee, Washington, and Wisconsin (and in Virginia during sales tax holidays).