VAT vs Sales Tax: Where the Difference Hides

Sales and use tax and Value Added Tax (VAT), or Goods and Services Tax (GST), as it’s called in some countries, are two common types of consumption taxes that governments worldwide use. In the United States, sales tax is the primary form of taxation on consumer goods, while VAT is more common in over 170 other countries all around the globe.

• Different tax collection mechanisms
  • Value Added Tax
  • Sales Tax
• Navigating between the different terms and scopes in VAT and Sales Tax
  • Value Added Tax
  • Sales Tax
• How do VAT and Sales Tax rates differ?
  • VAT
  • Sales Tax
• Why does VAT have more formalities and stricter requirements than Sales Tax?
  • VAT
  • Sales Tax
• What is the difference in place of supply rules in VAT and sourcing rules in Sales Tax?
  • VAT
  • Sales Tax
• How can Fonoa help?

Source: www.fonoa.com

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