What is the difference between VAT and Sales Tax besides when its added to the price?
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Sales Tax is only on the final sale to an actual consumer.
VAT is more complex, it applies every step along the way. For instance, if you are a company making wooden tables?
With Sales Tax you only have to charge Sales Tax when you sell a table and then forward the tax to the government.
With VAT, you pay VAT on the wood you buy to make tables, AND you charge VAT when you sell a table, and at the end of every quarter you forward the difference between VAT you charged when selling and paid when buying, to the government.
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