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What is value added tax? What is the difference between VAT and sales tax?
Can you explain what value added tax (VAT) is and how it differs from sales tax?
Sure, value added tax or VAT is a tax on the value added to goods and services during production or distribution. It is usually a percentage of the final price of the product or service. Sales tax, on the other hand, is a tax on the final sale of a product or service and is applied as a percentage of the sale price.