2006-11-27 18:47:11 · 2 answers · asked by ruba j 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
A sales tax is levied on the consumer; usually the purchaser of the item for last time. Sales taxes are paid by both individuals and businesses.
VATs are taxed at each level of commerce. Purchasers, other than the final individual consumer, are generally able to claim a credit back for what they paid in calculating what they owe on their sales. There is no such credit mechanism with a sales tax.
VATs can be levied so that the burden falls solely on individuals and not businesses (Canada's GST for example)
2006-11-30 07:47:34 · answer #1 · answered by zudmelrose 4 · 1⤊ 0⤋
Sales tax is a local tax added by the state for the sale and varies from state to state and VAT is value added tax which is a government tax at a fixed rate added to all goods that are considered to be luxury items.
2006-11-28 02:57:32 · answer #2 · answered by Anonymous · 0⤊ 0⤋