LIABILITY FOR AND DISPOSITION OF THE NATIONAL SALES AND USE TAX

(A) Every seller dealing in commerce shall be liable and responsible for collecting the national sales and use tax lawfully due and remitting it to the National Tax Service. Purchasers are liable for payment of the tax to the seller. The tax upon a credit sale of moveable property is due and payable in full at the time of the sale. The tax upon a credit sale or a contract for sale of immovable property where the purchase price is paid in installments is due and payable on each installment payment. If any seller transfers, sells, assigns, or otherwise disposes of an account receivable, they shall be deemed to have received the full balance of the consideration of the original sale and shall be liable for the remittance of the tax on the balance of the total sale price not previously reported. (B) The national sales and use tax is to be collected by the seller from the purchaser only at the retail, end or final transaction and not from wholesalers, or from intermediate sales of items directly used for or incorporated into the manufacture of a product to be ultimately sold at retail, or from sales made to exempt entities such as those made by contractors or subcontractors to the United States government, to its departments and institutions and its political subdivisions when acting in their governmental capacities only, or sales made to qualified exempt organizations. (C) There is no limit to the number of times a particular article may be subject to the national sales or use tax. Each time it returns to the stream of commerce, the purchaser must pay and the seller collect and remit the tax unless the sale is exempt. (D) The burden of proving that any particular person is liable for payment, collection or remittance of the national sales and use tax shall be on the National Tax Service. (E) Tax payments made by a purchaser to a seller and documented by written receipts or certificates amount to payments by the purchaser to the National Tax Service, discharging their tax liability. (F) In case of a dispute between the purchaser and seller about whether any particular sale is exempt from the national sales and use tax, the seller shall collect and the purchaser shall pay such tax and the seller shall then issue to the purchaser a receipt or certificate showing the name of the seller and the purchaser, the item or items purchased, the date, price, amount of tax paid, and a brief statement of the claim of exemption. The purchaser may then apply, within sixty days of the date of the sale, to the District Director of the National Tax Service of the district in which the purchaser resides or in which the sale was made for a refund of taxes paid. It is the duty of the District Director, or a duly qualified deputy, to resolve the question of exemption and to provide written notice of such determination and the appropriate refund plus interest calculated at the rate of 12 percent annually, where applicable, to the purchaser within sixty days of the date of the application for refund, subject to review within one year by a court of competent jurisdiction. (G) Excess national sales and use tax inadvertently collected must be remitted to the National Tax Service when not refundable. (H) Credit Certificates equal to 10 percent of any contribution valued at $250 or more made to qualified charitable organizations shall be issued by the National Tax Service if the charitable organization is recognized by the National Tax Service, if it applies for the Credit Certificate in the donor’s name, and if it submits proof of the contribution with each application. These certificates are applicable to any national sales and use tax liability. (I) Remittances discharging a seller’s national sales and use tax liability shall be made in full to the National Tax Service at any authorized federal depository on or before the tenth day of each month for all taxable transactions occurring during the previous month. Any seller doing business in two or more locations which are in different districts may elect to make consolidated deposits and file consolidated reports in a single district. (J) Summary documentation, also called a return or report, of monthly tax remittances may be submitted (postmarked) to the District Director of the National Tax Service of the district in which a tax deposit was made not less than five working days after the tax due date. (K) Each seller who, acting as agent for the National Tax Service, submits timely summary documentation for remitted tax is allowed to deduct 1 percent of tax deposits timely made to offset their expense in its collection and remittance. They shall also be subject to a penalty of 2.5 percent per month, cumulative each month to a maximum of 15 percent, for late deposits. Besides the penalty, late deposits shall be subject to interest charges at the rate of 1 percent per month. Inadvertent clerical errors are subject to interest but not penalty charges. (L) Credit Certificates issued by the National Tax Service are transferable in commerce and shall be accepted for tax payments at full face value at authorized federal depositories or may be remitted for tax liabilities with the summary documentation. (M) Any seller dealing in commerce who sells their business, or stock of goods, or quits business, shall be liable to file a final return with the National Tax Service within thirty days of such action. The seller’s successor in the business, if any, becomes liable for the collection and remittance of taxes on future sales and for taxes due and not remitted on current sales, unless they hold a receipt or certificate showing that the taxes were paid. (N) In cases of unusual circumstance, such as a natural disaster or a personal hardship, penalty or interest charges or any portion thereof on late deposits may be waived by a District Director of the National Tax Service or by Executive Order of the President of the United States. (O) Certificates of National Sales and Use Tax Exemption, identified by number and valid for twelve months, shall be issued to qualified and approved purchasers or sellers within sixty days of the application date made to a District Director of the National Tax Service. The District Director shall provide forms for such application and for the certificates and shall have the authority to verify that the purchaser or seller is, in fact, entitled to exempt status. (P) Sellers who make sales exempt from the national sales and use tax with valid exemption certificates issued by the National Tax Service, except those made to the United States government, are required to maintain records of such sales by item, date of sale and exemption certificate number for two years from the date of the sale. Sellers may, at their option, provide an itemized summary report to the National Tax Service of their exemption certificate sales on the same basis as if the sales had been subject to the tax. Each reporting seller making timely reports shall receive a Credit Certificate applicable to national sales tax liabilities equal to 0.15 percent of the total amount of exempt sales reported, except those made to the United States government, to cover the expense in the collection of data and the submission of the itemized summary report. (Q) Fifteen percent of the total amount of monies collected by the National Tax Service each month shall be immediately deposited to the Treasury Reserve Account and may not be transferred, appropriated or expended by the United States Treasury without authorization of the Board of Governors of the Treasury Reserve System. (R) All secondary sales of commercial investment securities of whatever type, both domestic and foreign, and all sales of commercial enterprises and business investments, in whole or in part, both domestic and foreign, made by foreign persons not subject to the jurisdiction of the United States to purchasers subject to the jurisdiction of the United States, whether resident of the United States or of a foreign nation, shall be made through an independent broker approved by the National Tax Service. The independent broker shall be liable and responsible for collecting the national sales and use tax lawfully due and remitting it to the National Tax Service.