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What is the difference between excise tax and sales tax?

Sales tax & state compliance

Sales tax applies broadly to retail sales and is collected from the buyer at the point of sale. Excise tax applies to specific goods or activities, fuel, air transport, certain insurance premiums, and is usually owed by the seller or producer.

A business can owe excise tax without ever collecting sales tax.

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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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