VAT vs GST: What Is the Difference?
Compare Value Added Tax and Goods and Services Tax for invoicing.
VAT and GST are both consumption taxes applied at each stage of the supply chain. GST is essentially a type of VAT used in countries like India, Australia, and Canada.
Key differences
- VAT — used in EU, UK, and many countries; multiple rate tiers common
- GST — used in India, Australia, Canada; often a single unified system
- Both support exclusive (tax added) and inclusive (tax included) pricing
- Always verify current rates for your jurisdiction