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 […]
Difference Between Tax Offset and Tax Deduction
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. […]
Difference Between Tax Return and Tax Refund
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. […]
Difference Between Direct Tax and Indirect Tax
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 contributions, but rather […]
Difference Between Excise Duty and Sales Tax
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. There are many […]