A sales tax levied on the sale of goods and services. In some countries, including Singapore, Australia, New Zealand and Canada, this tax is known as “goods and services tax” or GST. VAT is an indirect tax, in that the tax is collected from someone other than the person who actually bears the cost of the tax. Personal end-consumers of products and services cannot recover VAT on purchases, but businesses are able to recover VAT on the supplies that they receive where they use those supplies to make further supplies that also bear VAT. In this way, the total tax levied at each stage in the economic chain of supply is a fraction of the value added by a business to its products, and most of the cost of collecting the tax is borne by business, rather than by the state.