What is the difference between Sales & Use Tax and Value Added Tax?

Sales and Use Taxes vs Value Added Tax

Sales and use taxes in the United States and the value-added tax (VAT) used in most other countries have some similarities and differences.



Despite these differences, both sales and use taxes in the United States and VAT in other countries serve the same primary purpose of taxing the value added at each stage of the production and distribution of goods and services.

Businesses need to understand their tax obligations, including the frequency of returns and the potential penalties for not filing returns, in each jurisdiction where they have a taxable presence. Source Advisors can assist businesses with their sales & use compliance obligations.

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