What is VAT?
VAT, or Value Added Tax, is a tax added to many goods and services. A net price excludes VAT, while a gross price includes VAT. The VAT rate decides how much tax you add to the price.
GST
GST means Goods and Services Tax. It works like VAT in many countries, but each country sets its own rules and rates. Australia uses GST, while the UK and Ireland use VAT for many sales.
VAT vs. Sales Tax
VAT applies at several stages of a supply chain, while sales tax usually applies at the final sale. Eligible businesses can often recover input VAT, which makes VAT different from sales tax.
