For sales and use tax, when does a sale take place?

In the context of sales and use tax, a sale is considered to take place at the point when possession is transferred to the purchaser or on the date of actual transfer of title. Both of these events mark significant moments in a transaction where legal ownership and physical possession of the property are being exchanged.

When possession is transferred to the purchaser, it signifies that the buyer can immediately begin using or benefiting from the property, which is a critical point in the sales transaction. On the other hand, the transfer of title is a legal formality that officially conveys ownership, thus having tax implications as well.

Since the definition of when a sale occurs can be interpreted through either the transfer of possession or title, both scenarios are valid circumstances where sales can be recognized for tax purposes. This flexibility in understanding when a sale takes place is crucial, because it allows for the correct collection and remittance of sales and use tax based on either point of reference. Hence, either choice is correct due to this overlapping significance.