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difference between sales tax and value added tax

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difference between sales tax and value added tax

Sales tax and Value Added Tax (VAT) are both consumption taxes, but they are applied differently. Sales tax is charged only at the point of sale to the end consumer, while VAT is levied at each stage of the production and distribution process. In VAT, businesses can reclaim the tax paid on their purchases, whereas sales tax is typically a one-time charge. VAT is commonly used in many countries around the world, while sales tax is more prevalent in the United States
By: 360 Accounting Pro
04-Feb-2025 03:06 pm
Business & Services
User Website : https://www.360accountingpro.com/blog/what-is-the-difference-between-sales-tax-and-vat

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