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What is the difference between VAT and Sales Tax?

Overview

You want to know the difference between VAT and Sales Tax

 

Environment

AvaTax Update

 

 

Resolution

  • Value Added Tax is an indirect tax collected at different stages of production on goods and services

  • Sales Tax is imposed on the retail sale of the goods based on the percentage of revenue

  • Sales Tax is collected based on the total value of goods and services

  • Will's Whiteboard video on VAT (less than 4 minutes):  https://www.youtube.com/watch?v=6ajIe-5fC4M

 

 

 

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