Difference Between

Exempt vs Zero Rated (VAT)   VAT is the value added tax that is charged when selling goods and services. The price of these goods and services include the VAT amount. There are different types of VAT rates that apply to different types of goods and services. There are also certain goods and services on which... 

Duty vs Tariff   Duties and tariffs are both forms of taxes that are imposed on the import and export of goods to and from foreign countries. Since both are taxes, they are not voluntarily offered and are usually forced onto businesses and individuals. Duties and tariffs are quite similar to one another in... 

Tax vs Levy   Any individual, firm, corporation, or legal entity will have to make a payment to their country’s government known as a tax payment. The funds that are collected through tax is the largest income that the government receives and is used for the running of government, investment, development,... 

Payroll Tax vs Income Tax   Taxes are widely known as financial levies that are paid to the government by individuals who are known to receive monetary inflows from their salaries, wages, and profits made from assets. Taxes are usually forcefully obtained; in the sense, no person will willingly pay taxes,... 

Assessment Year vs Financial Year   There comes a time of year where individuals and corporations have to file their income tax returns. It is during this time that the terms financial year and assessment year are discussed in great detail. It is important to understand the meaning of financial year and assessment... 

Lien vs Levy   Any individual, firm, corporation, or legal entity will have to make a payment to their country’s government known as a tax payment. The funds that are collected through tax is the largest income that the government receives and is used for the running of government, investment, development,... 

Subsidy vs Tax   Taxes and subsidies are terms that are very commonly used in economics that have a large impact on the country’s economy, trade, production, and growth. Taxes and subsidies are complete opposites of one another; taxes are a cost and a subsidy in an inflow. Taxes are levied to discourage... 

EIN vs TIN   EIN and TIN are numbers issued to individuals by the tax authorities and hold great significance for them as these numbers become identities of people when filing tax returns. Taxpayer Identification Number or the TIN is a generic term that is used by the IRS, and there are different types of... 

Exemption vs Deduction   Exemptions and deductions are concepts that are associated with tax payments. All income earning citizens in a country are obliged to pay tax to the government depending on the income bracket into which they fall. This makes it very important for most individuals to understand the importance... 

VAT vs Sales Tax | Sales Tax vs Value Added Tax It is a commonly known fact that for any goods or services purchased a component of tax needs to be paid. Sales tax and VAT (value added tax) are consumption taxes, which are taxes that are charged when a consumer spends on purchasing goods and services. Sales tax... 

Tax Offset vs Tax Deduction Tax offset and tax deduction are related to income tax. Tax offset reduces the tax liability, whereas tax deduction reduces the assessable income (taxable income). What is Tax Offset? Tax offsets are ways of reducing the amount of tax that a person / company must pay but are not deductions.... 

Tax Return vs Tax Refund Tax return and tax refund are two of the most commonly used terms in almost all tax systems. Tax is a financial charge imposed upon an individual or a legal entity by a state or a functional equivalent of a state, such that, failure to pay is punishable by law. Taxes consist of direct... 

Direct Tax vs Indirect Tax Taxes are financial levies or burden imposed by governments upon its citizens to realize money for various purposes. The main purpose is to carry out administration and welfare activities for the population, and also to raise money for the defense of the country. Taxes are not voluntary... 

Excise Duty vs Sales Tax Excise duty and sales tax are two different taxes. Taxes are financial levies imposed by a government upon its citizens that are compulsory and not voluntary. Through these taxes a government is able to function, makes its budget and performs its duties for the welfare of the population....