Differentiate between VAT and Sales Tax

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Differentiate between VAT and Sales Tax About Us
MindCypress offers a broad portfolio of
customized learning programs globally to
professionals and graduate students. We not only
focus on concept learning but design programs
that emphasize on Practical Application as well.
MindCypress is not a content market place where
anyone can upload content as a course to sell
but, we handpick Industry experts after many
round of evaluation and verification to design
the courses. All our Courses are available in all
three modes of Training which are Workshop
Training, Live Virtual Classes (LVC) and
eLearning. Our Courses can be accessed on Website
and Mobile app anytime anywhere. VAT stands for
Value Added Taxes. Both VAT and sales tax are
forms of indirect charge on services and goods.
They are paid by the end customer and not the
business selling it. Corporates often get
confused between the two, making it necessary for
their employees to have the skills and knowledge
related to handling such tax charges. MindCypress
assists organizations in hosting physical or
virtual training sessions for VAT. This blog will
assist you by explaining what are the charges and
the main differences between VAT and Sales Tax.
So, lets begin with VAT first.
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• What is Value Added Tax (VAT)?
• VAT is a specific consumption tax that is
  inflicted upon every stage of the supply chain
  process. This means money is charged right from
  the manufacturer selling its raw material to a
  factory. Further, the factory sells the finished
  product to the wholesaler, which then goes to
  the retailers before finally reaching the
  consumer. The buyers at earlier stages of the
  production get reimbursed by the ensuing buyer,
  and the retail consumer pays VAT.
• What is Sales Tax?
• Sales tax is the final charge in the supply chain
  process and is indirect in nature. It means, the
  consumption tax is imposed on the consumers at
  the point of sales, by the retailer and then
  passed on to the government. Sales tax is a
  certain percentage of the products original
  value. According to the jurisdiction, a business
  is accountable for sales taxes that can be a
  physical location, an employee, or an affiliate,
  depending on the laws in that jurisdiction.
• Differentiate between VAT and Sales Tax
• Although VAT and Sales tax are both parts of the
  taxation system in India. Several features
  differentiate the two categories of taxes. Here
  is a list of how these taxes are distinct from
  each other.
• Paid By
• VAT is to be paid by both producer as well as a
  consumer while sales tax is levied entirely on
  consumers
• Calculation
• Calculation of VAT is complex because of the
  various layers of buying and selling
  transactions involved while that of sales tax is
  straightforward
• Admissible
• VAT is levied on various stages of production
  while sales tax is applicable on the final value
  of the purchase

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• The VAT model increases the cost of production to
  businesses which in turn can lead to a higher
  burden on purchasers whereas sales tax is easily
  handled
• Government Profit
• VAT tends to profit the government more rather
  than sales tax. This is because tax from each
  and every wholesale transaction also reaches the
  government unlike sales tax where just the end
  amount of tax is levied

Conclusion The chances that taxation can be
charged for taxes and increases commodity price.
Sales tax is less harmful to economic growth,
VAT can create chaos on low-income
taxpayers. Further, the two taxes do not depend
on a persons wealth or income, and most probably
rates are unchanged. Now you have a basic
understanding of the difference between sales
tax and VAT, it is time for you to enroll in a
training session for VAT. Contact MindCypress
for more information on training and
certification.
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Resource https//blog.mindcypress.com/p/different
iate-between-vat-and-sales-tax