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you hi welcome to wills whiteboard I'm will today we're going to explain excise tax what it is and how it's different from sales tax let's say you're on a trip you stopped at a convenience store you fill up on gas and you buy a map on an item like a map you'll often be charged sales tax sales tax is a transactional tax where you're charged a percentage of the price of the item on something like fuel gas however you will be charged an excise tax and an excise tax is a transactional tax where you're charged by the unit say 50 cents per gallon of fuel now the sales tax is often reflected down here in the tax line whereas an excise tax is often just baked into this price here there's a lot of complexity that goes into handling each of these types of transactions taxes which have their differences and there are a lot of different types of excise tax for example alcohol taxes on alcohol taxes on cigarettes and taxes on different types of fuel if your business manages any type of excise tax y

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