The article discusses value added tax (VAT) in comparison to other forms of consumption-based taxes. It covers topics such as tax registration, business activities, taxable sales, time of supply, and valuation rules. The research also delves into the tax credit mechanism, zero rating, exemptions, and cross-border aspects of VAT. It explores how VAT applies to various sectors like governmental entities, nonprofit organizations, financial services, insurance, real property, telecommunications, electronic commerce, and transportation. The article also examines transition rules under VAT and includes appendixes with VAT and sales tax rates worldwide, the integrated text of the sixth directive, and an ABA model VAT statute.