GST and VAT Explained — Complete Guide to Goods and Services Tax for Every Country
Goods and Services Tax (GST) and Value Added Tax (VAT) are the primary indirect taxation systems used by most countries in the world. Whether you are a business owner calculating prices, a consumer wanting to understand what you are paying, a student studying taxation, or a professional working across multiple countries — understanding how GST and VAT work is an essential financial skill. This complete guide explains exactly what GST and VAT are, how they are calculated, how they work in different countries, and the practical implications for businesses and consumers. What is GST and VAT? GST (Goods and Services Tax) and VAT (Value Added Tax) are both consumption taxes — taxes levied on the consumption of goods and services rather than on income or profit. Despite their different names they operate on essentially the same principle: tax is collected at each stage of the supply chain on the value added at that stage, with the final consumer bearing the full tax burden. The key differ...