What’s the Difference Between GST and VAT?

GST and VAT are similar taxes, but they differ in some important ways. Here’s a breakdown.

How GST and VAT Work

Both taxes are applied to goods and services, but VAT is collected at each stage of production while GST is usually only at the final sale.

Examples of VAT and GST Countries

GST is common in countries like New Zealand, while VAT is used in the European Union.