Sales tax is levied at a retail level while value-added-tax (VAT) is levied at all levels within the supply chain.

To give an example, sales tax is deemed to be taxed to the end consumer only – there is no accumulation within the supply chain. With VAT there is an accumulation within the supply chain.

However, VAT is neutral: as soon as you are a VAT-taxable person – for example, you are the content provider and you supply your service to a gateway such as an aggregator – then that aggregator will provide your services and these services are VAT-taxable. But, any VAT due on those services are recoverable.

With sales tax if you actual establish that the person you are selling to is not the end user, then no sales tax is charged. If the consumer is the end user then you will charge sales tax.