Sales Tax

Sales tax is a tax paid at the point of purchase by consumers (the last stage in the supply chain of a good or service) to sellers. VAT is a form of sales tax whose burden ultimately also falls on end-consumers but some people make a distinction between VAT and a pure sales tax on the basis that VAT is charged and paid throughout the supply chain and every step along the supply chain – with the exception of end-consumers – is able to claim VAT relief.