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  • Brainly User
2014-06-21T20:25:23+05:30
A value-added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price.
The purpose of VAT is to generate tax revenues to the government similar to the corporate income tax or the personal income tax.
VAT is a tax on consumer spending so everyone who pays for good and services pays VAT.
VAT is charged at every stage of sale where the cost of an item is increased. The standard rate of VAT is 23%.
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  • Brainly User
2014-06-21T20:36:24+05:30
VAT is Value Added Tax.It is a type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale.
Sales tax is taken when trucks carrying goods have to pay money.
It is collected from citizens through property tax,electricity tax,telephone tax,etc.
It is utilized by government to make roads,put on streetlights,make bridges,etc.
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