What is the difference between VAT and GST?

VAT stands for Value Added Tax and it is a consumption tax applied to the purchase price of goods and services. GST stands for Goods and Services Tax and it is a consumption tax that is imposed upon the cost of goods and services. Both GST and VAT are taxes that share the same characteristics but have different names.

The only differences between these taxes derive from the specific rules that each country applies on the taxes themselves such as: tax rates, items exempt from tax and the requirements of registration.