There are various types of sales taxes, administered by varied levels of government for varied purposes.
Probably the most well-known type of sales tax is retail sales tax, which is paid to the seller of a product or service by the consumer. Retail sales taxes may not be applied to all types of goods that are sold - food may be exempt from sales tax, for example. This type of sales tax covers all levels of production and all materials involved in creation of the final product.
Excise taxes are levied directly on producers or wholesale suppliers of certain types of products, such as alcohol and gasoline. A retail seller of these products is not required to pay excise tax.
Value-added taxes are paid by consumers. VAT differ from retail sales taxes in that
collections, remittances to the government, and credits for taxes already paid occur each time a business in the supply chain purchases products from another business.