difference
This query is : Resolved
06 April 2016
what is difference between sales tax and vat
07 April 2016
Right now Sales Tax has been replaced by VAT
But for understanding difference between both are :
1) Sales Tax is a tax on sales. Value Added Tax is a tax on value addition done by each party of the supply chain like supplier, producer, wholesaler, distributor or retailer, etc.
2) Sales Tax is a single-stage tax, but VAT is a multi-stage tax.
3) Input Tax Credit (ITC) is available in VAT but not in Sales Tax.
There are others difference also.
But for understanding difference between both are :
1) Sales Tax is a tax on sales. Value Added Tax is a tax on value addition done by each party of the supply chain like supplier, producer, wholesaler, distributor or retailer, etc.
2) Sales Tax is a single-stage tax, but VAT is a multi-stage tax.
3) Input Tax Credit (ITC) is available in VAT but not in Sales Tax.
There are others difference also.
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