Sales taxes are a necessary evil as they are levied on the sale of goods and services to consumers and collected by businesses on behalf of the government. While many people refer to them as sales taxes, they can also be called consumption taxes, turnover taxes, or value-added taxes (VAT). Consumption taxes are taxes that are levied on the final consumption of goods and services, rather than on the production or supply chain, while turnover taxes are a tax on the total amount of a company's revenue. VAT is a type of consumption tax that is applied as a percentage of the price of goods and services at each stage of their production and distribution.