[fsckboy]

sales taxes are based on the value of the goods.

value added taxes are paid on the profit made on the good, and are paid by the seller (because the buyer doesn't know what the profit is). value added taxes are basically corporate income taxes

[ndsipa_pomu]

Here in the UK, the value added tax (VAT) is calculated from the sales price to the customer. Companies can claim back VAT that they pay for parts etc so that VAT is pretty much only paid by the customer