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Answer Posted / bino baby
Value Added Tax or VAT as it is commonly known is an
indirect tax imposed on goods or services at various stages
of its production. It is imposed on domestic as well as
foreign goods and is one of the main income structures of
the country.
Sales Tax, on the other hand is levied on completed
products and the consumer is aware of exactly how much of
it he is paying.
The burden of the VAT is, however, not felt by the consumer
as much as the Sales Tax is. Since it is imposed during
production itself it does not affect the buyer unlike the
sales tax which increases the price of a commodity
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