Consumption tax, also known as a sales tax or a value-added tax (VAT), is a tax levied on goods and services that are consumed by the end-user or final consumer. It is typically included in the price of the product and is paid at the point of sale. There are many synonyms for the term consumption tax, including excise tax, indirect tax, turnover tax, and transaction tax. These terms all refer to a tax on goods and services that is based on the value of the transaction rather than on income or profits. While the specific terminology may vary, the basic concept of a consumption tax remains the same and is a common means of generating revenue for governments around the world.