VAT is a consumption tax levied on the value added to goods and services at each stage of production or distribution. It is typically borne by the end consumer but collected and remitted by businesses. VAT rates and regulations vary across countries, and many jurisdictions exempt certain essential goods and services from VAT.

Income tax is a levy imposed by governments on individuals and businesses based on their earnings or profits. It's a direct tax, typically calculated as a percentage of taxable income. Income tax revenue is a major source of government income, funding public services and programs. Tax rates vary based on income levels and may include deductions or credits to reduce tax liability. Taxpayers usually file annual returns disclosing income and pay taxes accordingly.

Governmental agency overseeing import/export regulations, levying tariffs and duties on goods, facilitating trade, ensuring border security, and promoting international cooperation for efficient and compliant cross-border transactions.