Gordon Operates the Tennis Pro Shop in Blacksburg,Virginia

question 101

Short Answer

Gordon operates the Tennis Pro Shop in Blacksburg,Virginia.The Shop sells,manufacturers,and customizes tennis racquets for serious amateurs.Virginia has a 5 percent sales tax.Alaska has a 6 percent sales tax.Determine the sales and use tax liability that the Shop must collect and remit if it sells a $1,000 racquet order to an Alaska customer (assume the Shop has no sales personnel or property in Alaska)that purchases the merchandise from the Virginia store over the internet?

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Definitions:

Scaling

The process of increasing or expanding the size, scope, or capabilities of something, especially in business growth and technology.

Imagining

The process of forming mental images or concepts of what is not actually present to the senses, often used in creative thinking and problem-solving.

Product Innovation

The development and introduction of new or significantly improved goods or services that add value to customers.

Commercialisation

The process of bringing a new product or service to the market, turning an invention or idea into a viable business offering.