are vat and gst the same 
value added tax vat and goods and services tax gst are similar taxes that are levied on the sale of goods and services both vat and gst are also indirect taxes which means that they are collected by businesses and then passed on to the government as part of the price of the goods or services however there are some key differences between the two vat is primarily used in european countries and is collected at each stage of the production and distribution process while gst is used in countries around the world and is collected only at the final point of sale to the consumer vat is generally applied to a wider range of goods and services than gst and the rates of vat and gst can vary depending on the type of goods or services being sold and the country in which they are sold the bottom linethe goods and services tax gst is a type of tax levied on most goods and services sold for domestic consumption in many countries it is paid by consumers and remitted to the government by the businesses selling the goods and services some countries have introduced gst exemptions or reduced gst rates on essential goods and services or have implemented gst credits or rebates to help offset the impact of gst on lower income households the gst is often a single rate tax applied throughout a country and is preferred by governments because it simplifies the taxation system and reduces tax avoidance in dual gst systems such as those in canada and brazil the federal gst is applied in addition to a local sales tax the gst has been identified by critics as regressive and can potentially place a relatively higher burden on lower income households 