Sales and use tax compliance requires a business to prepare, file, and pay taxes to each jurisdiction, with monthly, quarterly or annual filings. A business must consider the product and service being sold, the tax rate where the customer is receiving the product and service, the terms of the contracts, and the invoices.  Additionally, proper compliance needs to consider the location of the customer to insure whether the transaction is taxable in that jurisdiction, what the proper rate of tax is for the locality and what is the proper jurisdiction in which to report the sale.