I had purchased iphone x in Apple store and for my surprise they charged me tax of 100 dollars

Your post certainly makes it sound like you are not planning to use this iPhone in the United States, the country where you purchased it.

That is a mistake. Your iPhone will very likely not be able to be serviced by Apple outside the United States.

In the US, almost everything with the exception of groceries is taxed at retail. The advertised prices in the US do not include sales taxes as they vary from state to state, and county to county within states..

Philly_Phan wrote:

If you live in a state with a sales tax AND you obey the law by paying that tax, you can get a refund.

It depends upon the state. I know that is not the case with Minnesota. If you buy something that is taxed at a higher rate than MN you don't pay anything, otherwise you pay the difference between the tax you paid to the other state and what MN would have charged.

Limnos wrote:

Philly_Phan wrote:

If you live in a state with a sales tax AND you obey the law by paying that tax, you can get a refund.

It depends upon the state. I know that is not the case with Minnesota. If you buy something that is taxed at a higher rate than MN you don't pay anything, otherwise you pay the difference between the tax you paid to the other state and what MN would have charged.

I stand corrected. That is the norm.

Legally they have to charge sales tax for shipment to any state where they have a “physical presence”, if there is a sales tax. Not sure how it works for states where every city/county might charge its own supplemental sales tax.

Not sure how specific it gets for city/county sales taxes. If you’re taking it to another country you don’t need to worry about use tax if you bought it in a state without sales tax. But you might get hit for import duties.

Philly_Phan wrote:

You’re referring to the vendor responsibility. I’m referring to the taxpayer.

I'm referring to the taxpayer, judging by the username (with an Indian city) of the OP. If it's bought in the US to use overseas, there is no use tax per se, but there might be import duties. There's also no means to get a sales tax refund though in the United States like I remember from visiting Canada.

Sales tax in Illinois is 8.25% and Apple would be obliged to charge this at point of sale.

If you live in a state with a sales tax AND you obey the law by paying that tax, you can get a refund.

The tax is also a sales AND USE tax. That means that you will pay tax on the full value of the product even if you obtained it for less, even free.

And the tax rates in Cook County and Chicago vary, up to 10.25%, so $100 on a $1000 phone would be correct.

You’re referring to the vendor responsibility. I’m referring to the taxpayer.