A value-added tax is actually a sales tax that is

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A value-added tax (VAT) is a type of sales tax that is imposed on each stage of the production process where value is added, from raw materials to finished product. In other words, the tax is levied on each transaction in the supply chain, and each seller along the way claims a credit for taxes paid on inputs. The net effect is that the final consumer pays the full VAT, but the tax is actually collected and remitted in stages by all the businesses involved in producing, distributing, and selling the goods or services in question.

A Value-Added Tax Is Actually a Sales Tax That Is