Any suggestions?

[Dan Loan]

I’m a small business owner expanding to international markets. What’s the key difference between sales tax and VAT, and how do they impact businesses differently?

[JoanH]

Sales tax and VAT (Value Added Tax) are two different systems for collecting taxes on goods and services. Sales tax is typically applied only at the final point of sale to consumers, whereas VAT is charged at every stage of the supply chain. To understand these differences in more detail and how they might affect your business, check out this in-depth article: Sales tax vs VAT https://vatcompliance.co/blog/differences-between-sales-tax-and-vat/ It covers the structural distinctions, administrative processes, and the implications for businesses operating internationally.

[JacobCarter]

And VAT is a multi-tiered tax that is charged at each stage of production and sale, but businesses can get a tax deduction for VAT already paid. It is common in Europe and many other countries. If you are entering international markets, it is important to consider local tax laws to properly formalize transactions and avoid double taxation.

[Author]

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