VAT vs GST vs sales tax in one minute

Different countries tax sales in different ways. Here is the one-minute version of what you need to know before you add tax to an invoice.

1. 1

   VAT (EU, UK, Gulf) and GST (India, Australia, Canada, NZ) are charged at each step of the supply chain; registered businesses reclaim the tax they pay.

2. 2

   US sales tax is charged only on the final sale and varies by state and city.

3. 3

   Always show the tax separately from the subtotal, and check local rules or an accountant for your exact obligations.