What is the difference between GST and VAT?

What is the difference between GST and VAT?

For all intensive puposes VAT and GST are essentially the same type of indirect tax and work in virtually the same way.  Going on the pure defininition VAT is linked to tangible goods, whilst GST is linked to both tangible goods and services. However in most countries that apply VAT, especially European ones, VAT is applied to both goods and services, which would indicate little difference between the two. Yet  there is a big difference between Sales and Use Tax, used in places such as America, and VAT/GST.

Where there is  a requirement to split between goods and services this can easily be accommodated in your Oracle ERP System.

Laura Stockley
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Laura Stockley

Consultant at eBiz Answers Ltd
Laura graduated from University with a degree in Business Studies, and has been working as an Oracle eBTax consultant for several years now, with both R12 eBTax and Fusion (Oracle Cloud) Tax. Focussing primarily on the tax module and its components, Laura also works on the other financial modules and understands how they integrate with the tax engine. Laura has worked on projects with multiple clients covering all aspects of the tax module including AP, AR and GL, working on everything from design, configuration, testing to support. An excellent communicator, Laura enjoys interacting with end users and relishes the challenge of resolving their issues; making tax an enjoyable experience, always.
Laura Stockley
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