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Is value added tax the same as sales tax?

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Sales tax, as compared to VAT is the percentage of revenue imposed on the retail sale of goods. Unlike VAT, sales tax is levied on the total value of goods and services purchased. VAT is an indirect tax that is imposed on each stage of production of an item. read more

The Value Added Tax is a form of indirect tax that is imposed at different stages of production on goods and services. VAT is levied on the import goods as well and the same rate is maintained as that of the local produce. Most of the European and non-European countries have adopted this system of taxation. read more

The Value Added Tax (VAT) and Sales Tax both are consumer tax, which means that both have to be paid after purchase of a product. VAT is an indirect tax while sales tax is a direct tax. At the different stages of goods production and services VAT is levied. read more

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