Updated on June 28, 2022
Value Added Tax (VAT) is a consumption tax that is applied to the purchase price of goods and services. The Products and Services Tax (GST) is a consumption tax that is levied on the price of goods and services. GST and VAT are two taxes with similar characteristics but distinct names.
The main distinctions between these taxes are the precise laws that each country applies to the taxes themselves, such as tax rates, exempt products, and registration procedures.