Value added tax (VAT), or goods and services tax (GST) is a consumption tax A consumption tax is a tax on spending on goods and services. The term refers to a system with a tax base of consumption. It usually takes the form of an indirect tax, such as a sales tax or value added tax. However it can also be structured as a form of direct, personal taxation: as an income tax that excludes investments and savings. A direct (CT) levied on any value that is added to a product. In contrast to sales tax A sales tax is a consumption tax charged at the point of purchase for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale. A portion of the sale may be exempt from the calculation of tax, because sales tax laws usually contain a list of exemptions. Laws governing the tax may, VAT is seen as neutral with respect to the number of passages that there are between the producer and the final consumer whereas sales tax is levied on total value at each stage (though in the U.S. and many other countries, sales tax is charged only at the point of final sale to the final consumer, and a use tax only to the final user; there are no sales taxes paid at wholesale or production level). The result is a cascade (downstream taxes levied on upstream taxes). A VAT is an indirect tax In the colloquial sense, an indirect tax (such as sales tax, value added tax , or goods and services tax (GST)) is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the customer). The intermediary later files a tax return and forwards the tax proceeds to, in that the tax is collected from someone who does not bear the entire cost of the tax.
Maurice Lauré Maurice Lauré is primarily known for creating the taxe sur la valeur ajoutée (TVA in French, otherwise known as value added tax (VAT) in English), Joint Director of the French Tax Authority, the Direction générale des impôts, was first to introduce VAT on April 10, 1954, although German industrialist Dr. Wilhelm von Siemens proposed the concept in 1918. Initially directed at large businesses, it was extended over time to include all business sectors. In France France (pronounced /ˈfræns/ or /ˈfrɑːns/; French pronunciation (help·info): [fʁɑ̃s]), officially the French Republic (French: République française, pronounced: [ʁepyblik fʁɑ̃sɛz]), is a member state of the European Union located in its western region, with several overseas territories and islands located on other continents. France, it is the most important source of state finance, accounting for 52% of state revenues.[1]
Personal end-consumers of products and services cannot recover VAT on purchases, but businesses are able to recover VAT on the materials and services that they buy to make further supplies or services directly or indirectly sold to end-users. In this way, the total tax levied at each stage in the economic chain of supply is a constant fraction of the value added by a business to its products, and most of the cost of collecting the tax is borne by business, rather than by the state. VAT was invented because very high sales taxes and tariffs encourage cheating and smuggling. Critics point out that it disproportionately raises taxes on middle- and low-income homes.
Contents |
Deutsche Welle
The government also raised eyebrows in the European Union after it doubled its 2009 budget deficit forecast to 12.5 percent of Gross Domestic Product (GDP). ...
Eurostat experience highlights doubts over Greek data EUobserver.com
Papaconstantinou: 2010 a difficult year
all 37 news articles »
269px x 267px | 14.70kB
[source page]
EU Savings Tax investors do your homework EU representatives last month decided that the original January 1 2005 deadline for the implementation of the Savings Tax directive must be pushed back to 1stJuly 2005 in order to present an even playing field between EU members and the third countries compelled to adhere to the information sharing directive The European Union s
