Value added taxes (VAT) also known as goods and services taxes (GST), sales tax, consumption tax or indirect tax is imposed on the value added to goods and services at each stage of production and distribution. Some countries use a different term for VAT, such as in Australia its referred to as goods and services tax, in Japan its referred to as consumption tax and in Canada its referred to as harmonized sales tax. Despite the different terms used, all these taxes serve the same purpose of generating revenue for governments and redistributing wealth within the economy. VAT has become a popular tax system worldwide due to its efficiency in collecting taxes and reducing tax evasion.