What's the difference between sales tax and value added tax?

• Tax is an ancient concept. It has been in existance since the industrial revolution.

Value added tax or VAT is a dynamic concept.

• Here theproducer pays the tax only on the value added by him or the value of the servicce provided by him.
• He does not pay tax on the value of the intermediate good or the raw material purchased.
• This concept has become very important for export driven economies. The Govt does not want to make the production process less compitative due to double taxation.
• Some govts also give concesions in import duty of raw materials , intermediate goods and charge only a discounted VAT on the exportable goods .
• For exmple the Indian govt charges only the VAT of Gold ornaments exported in the SEZs.

sales tax is calculate or charged on total value of goods and services purchase and VAT is indirect tax and that i simposed on different stages of production of gods and services

Sales tax is collected by the retailer when the final sale in the supply chain is reached via a sale to the end consumer

VAT (Value-Added Tax) is collected by all sellers in each stage of the supply chain. Suppliers, manufacturers

sales tax is movable value depending on types of products and service. but VAT is normally fixed tax taken by goverment as support 

sales tax is tax on value of goods sold and VAT is charged on the value addition only i.e.,Tax is on the difference between sales value and purchase value and not on the entire sale value.

Sales tax is based on the final /finshed item which is ready for sale .

While Value added tax is based on each step of manufacturing process and not on finsihed items of manufactured by the said company