What is the difference between sales tax and value added tax?

Sales tax is a consumer tax charged on a retail purchase only, as a percentage of the total value of goods or services.

The Value Added Tax is a form of indirect tax that is imposed at the different stages of production of goods and services. The tax is paid at each step of the distribution, from manufacturer to distributor to warehouser to retailer to customer. The company or agent is taxed on the difference between their cost and their resale price.