Download Punjab Sales Tax on Services – An Overview — Value added taxes or taxation (VAT) is one of the four marvelous innovations of the twentieth century, the other three being atomic energy, anti-biotics and computers or information technology. Historically, VAT replaced turnover taxes and also emerged as a precursor of income taxation. Typically, VAT is charged on both goods and services. VAT is charged on every supply or sale or rendition stage of goods and services in the commercial chain of production, distribution and consumption. There are several forms of VAT in the world but the one based on tax invoice-related credit mechanism is considered to be the ideal type because of its inbuilt automatic system of converting multi-stage tax assessments into a simple stage levy.