The differences are covered at the PostgreSQL documentation for date/time types. Yes, the treatment of TIME or TIMESTAMP differs between one WITH TIME ZONE or WITHOUT TIME ZONE. It doesn't affect how the values are stored; it affects how they are interpreted.
The effects of time zones on these data types is covered specifically in the docs. The difference arises from what the system can reasonably know about the value:
With a time zone as part of the value, the value can be rendered as a local time in the client.
Without a time zone as part of the value, the obvious default time zone is UTC, so it is rendered for that time zone.
The behaviour differs depending on at least three factors:
WITH TIME ZONE or WITHOUT TIME ZONE) of the value.Here are examples covering the combinations of those factors:
foo=> SET TIMEZONE TO 'Japan';
SET
foo=> SELECT '2011-01-01 00:00:00'::TIMESTAMP;
timestamp
---------------------
2011-01-01 00:00:00
(1 row)
foo=> SELECT '2011-01-01 00:00:00'::TIMESTAMP WITH TIME ZONE;
timestamptz
------------------------
2011-01-01 00:00:00+09
(1 row)
foo=> SELECT '2011-01-01 00:00:00+03'::TIMESTAMP;
timestamp
---------------------
2011-01-01 00:00:00
(1 row)
foo=> SELECT '2011-01-01 00:00:00+03'::TIMESTAMP WITH TIME ZONE;
timestamptz
------------------------
2011-01-01 06:00:00+09
(1 row)
foo=> SET TIMEZONE TO 'Australia/Melbourne';
SET
foo=> SELECT '2011-01-01 00:00:00'::TIMESTAMP;
timestamp
---------------------
2011-01-01 00:00:00
(1 row)
foo=> SELECT '2011-01-01 00:00:00'::TIMESTAMP WITH TIME ZONE;
timestamptz
------------------------
2011-01-01 00:00:00+11
(1 row)
foo=> SELECT '2011-01-01 00:00:00+03'::TIMESTAMP;
timestamp
---------------------
2011-01-01 00:00:00
(1 row)
foo=> SELECT '2011-01-01 00:00:00+03'::TIMESTAMP WITH TIME ZONE;
timestamptz
------------------------
2011-01-01 08:00:00+11
(1 row)