Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

What is difference in VAT and Sales Tax?

user-image
Question ajoutée par Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC
Date de publication: 2014/12/05
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Often referred to as the "goods and service tax", the Value Added Tax is distinctly different from the sales tax levied on exchanges. The Value Added Tax is a form of indirect tax that is imposed at different stages of production on goods and services. VAT is levied on the import goods as well and the same rate is maintained as that of the local produce. Most of the European and non-European countries have adopted this system of taxation. The transparent and neutral nature of taxation has prompted VAT to emerge as one of the robust revenue raisers in these countries. Sales tax, as compared to VAT is the percentage of revenue imposed on the retail sale of goods. Unlike VAT, sales tax is levied on the total value of goods and services purchased. The value added tax system, unlike the conventional sales tax system, efficiently addresses the problems of cascading and input tax credit that causes an automatic hike in the consumer price level. The incidence of cascading is avoided in VAT as the tax is imposed on the value addition at every stage of production

Ednalyn Banuelos, CMA
par Ednalyn Banuelos, CMA , Projects Accountant , Grade Ref., LLC

VAT ia an excise tax based on the value added to a product at each stage of production. Sales tax is a tax for the sales of certain goods and services. Usually the government allow or require the seller to collect the tax from the buyer at the time of purchase.

Mirzet Ramić
par Mirzet Ramić , Director , ALAHMADIA PARTNERS REAL ESTATE DOO SARAJEVO

Sales tax is calculated once and VAT is calculated at each new transaction.

Utilisateur supprimé
par Utilisateur supprimé

VAT is complementary to sales tax for every value-added to goods or services .  

georgei assi
par georgei assi , مدير حسابات , المجموعة السورية

VAT

Is a kind of consumption tax that is added to the final price of the product as added additional value to the product. Value added tax as a percentage of the proposed price of the seller.

VAT is a tax on consumption, where usually paid by the user or the consumer who buys the product, while the supply of the value of the tax by the seller.

Tax paid by the buyer is the difference between the selling price and the cost of the product that has already been paid by taxes

As for the sales tax they impose general sales tax on goods imported and locally manufactured unless otherwise special provision) .- sales tax applied in three phases:

1. The first phase: expensive to collect sales tax and supply all of the importer and manufacturer and the service is performed.

2. Phase II: importer and manufacturer and officiated the service and wholesaler.

3. The third stage: the importer, manufacturer and officiated the service and wholesaler and retailer

Malik Khalid Mahmood
par Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC

Thanks for Valuable Contribution by the Experts with Practicle Experience in same field

Basit Ali
par Basit Ali , Director of Engineering , Laverda Suites & Villas / Blue Bay Resorts

Sales tax, as compared to VAT is the percentage of revenue imposed on the retail sale of goods. Unlike VAT, sales tax is levied on the total value of goods and services purchased.

FITAH MOHAMED
par FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

AGREE WITH MR VENKITARAMAN & MISS LENYAN ANSWERS 

Urslan Ali
par Urslan Ali , Supervisor Finance, Logistics , Sevens LLC - Al Naboodah Group

VAT is charged at every value addition at each stage till reaching to the final consumer, where sales tax is is added by the produce of goods or originator of services up til final consumer.

Jijumon James
par Jijumon James , SENIOR ACCOUNTANT , BADR AL SAMAA HOSPITAL

Sales tax is calculated on total sales, without considering input VAT on purchases, Ie input VAT on purchases not separated from purchase value. , so tax on tax will arises.

but in case of VAT,purchase vale excluding Input VAT is taken and profit will be added with this figure. and output VAT will be calculated on this amount. Input VAT on purchases can be set off with VAT payable. So the Trader/Manufacturer liable to pay pay only the net amount. And For claiming input VAT,  original invoice is compulsory. then  tax evasion can be avoided. and also Tax on tax will be avoided in case of Value added Tax method.

Khaled Mohee Eldeen Abbas Mahmoud
par Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

I agree with valuable answres porvided

More Questions Like This