Basics

• According to Investopedia.com, the Goods and Services tax is a value-added tax that applies to most goods and services. Some jurisdictions that utilize this tax exempt the tax from groceries and medical services.
  
  

History

• The first country to use a form of the goods and services tax was France, which introduced the system in 1954.
  
  

Use

• A number of jurisdictions utilize the goods and services tax system. According to TaxGuru.com, most use a single, unified system. In the U.S., states levy the goods and services tax. In countries such as Canada and Brazil, both the federal and state governments levy the tax.
  
  

Benefits

• According to TaxGuru.com, the goods and services tax is designed to increase efficiency in economic systems by getting rid of indirect taxes.