The conversation between human and AI assistant.
What is value added tax? What is the difference between VAT and sales tax?
Are there any advantages to using VAT instead of sales tax?
Yes, VAT is generally considered more efficient than sales tax because it is applied at each stage of the production and distribution process. This means that the tax burden is spread out among all the businesses involved rather than just the final consumer. VAT also encourages businesses to keep accurate records of their transactions, making it easier for tax authorities to monitor and collect tax revenues.