A tax that is assessed on products and services purchased by the end user. Sales taxes are assessed by city, county, or state governments and used to fund the activities of the government. Usually the sales tax rate ranges from 4 percent to 8 percent and is added onto the listed price. In Europe, sales tax takes the form of a value-added tax (VAT), which often ranges from 18 percent to 22 percent. It is usually included in the sales price of the good listed on the price tag.