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How does VAT work?
June, 29th 2009

How exactly does the VAT work? How is it different from the sales tax system earlier and in what way will the GST be a clearer and more uniform structure in the future?

A lot of the discussion of the upcoming budget has centered around the value added tax and whether the budget will feature any mention of a future goods and services tax or GST regime.

But exactly how does the VAT work? How is it different from the sales tax system earlier and in what way will the GST be a clearer and more uniform structure in the future?

To answer these questions we have with us Supriya Jain, a senior manager at KPMGs indirect tax division.

As always if you want anything explained on Just to Clarify, please do write in at

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