Sales tax is levied on the sale of taxable goods and is imposed by the tax authorities on transactions that occur within a state. No sales tax is imposed for transactions originating outside the state when the seller is not present in that state.

If you are a seller in an intrastate transaction, you must collect and remit sales tax to the tax authorities. If you are a purchaser in an intrastate transaction, the vendor must collect sales tax from you and remit it to the tax authorities.

When posting a document, the system automatically determines sales tax and assigns the amounts to the appropriate accounts or retains the information for reporting.

If Company 1 sells to Company 2, then Company 1 charges sales tax on the transaction because the sale is made intrastate.