An indirect tax (such as sales tax, value added tax (VAT), or goods and services tax (GST)) is collected from the person who bears the tax by intermediaries and the proceeds passed on to government. It contrasts with a direct tax (such as income tax and corporation tax), which is collected directly by government from the persons (legal or natural) on which it is levied. A sales tax is a tax on consumption. ... Value added tax (VAT) is a sales tax levied on the sale of goods and services. ... The Goods and Services Tax is a Value-added tax that exists in a number of countries including Canada, Australia, and New Zealand. ... A direct tax a tax that is collected directly by government from the persons (legal or natural) on which it is levied. ... This article needs to be cleaned up to conform to a higher standard of quality. ... Jim Callaghan, the Chancellor of the Exchequer who introduced corporation tax in 1965. ...