What is the Difference between Sales Tax and VAT?

What is the difference between sales tax and value-added tax (VAT)? Both sales tax and VAT are types of indirect tax – a tax collected by the seller who charges the buyer at the time of purchase and then pays or remits the tax to the government on behalf of the buyer. Sales tax and VAT are a common cause of confusion within the corporate tax community.

• Sales tax vs. VAT overview
• What triggers the tax administration requirement?
• Who collects and remits sales tax and VAT?
• Invoicing
• Who pays sales tax and VAT?

Source: Thompson Reuters

---

---