2006-07-28 22:39:26 · 6 answers · asked by Nitesh P 1 in Cars & Transportation ➔ Motorcycles
VAT - Value Added Tax
2006-07-28 22:42:18 · answer #1 · answered by Mars 2 · 0⤊ 0⤋
Value added tax (VAT) is a type of sales tax. In some countries, including Australia, Canada, New Zealand, and Singapore, this tax is known as "goods and services tax" or GST; in Japan and Australia it is known as "consumption tax". VAT is an indirect tax, in that the tax is collected from someone other than the person who actually bears the cost of the tax (namely the seller rather than the consumer). As VAT is intended as a tax on consumption, exports (which are, by definition, consumed abroad) are usually not subject to VAT or VAT is refunded.
VAT was invented by a French economist in 1954. Maurice Lauré, joint director of the French tax authority, the Direction générale des impôts, as taxe sur la valeur ajoutée (TVA in French) was first to introduce VAT with effect from 10 April 1954 for large businesses, and extended over time to all business sectors. In France, it is the most important source of state finance, accounting for approximately 45% of state revenues.
Personal end-consumers of products, consumers 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. It has been criticized on the grounds that it is a regressive tax.
2006-07-28 22:43:42 · answer #2 · answered by Karthik 2 · 0⤊ 0⤋
Value Added Tax
This is a form of "sales tax" at every step in mfg.
If you were a steel mfg. and bought ore from a mine, that ore would be taxed.
Once you produced steel, for example, sheet metal, and sold that to an auto mfg, that sheet metal would be taxed again.
When the auto mfg builds the car and sells it to a dealer, it is taxed again. When it is sold to the consumer, it is taxed again.
The consumer ultimately pays all the taxes.
ON TOP OF TAX., ON TOP OF TAX, etc.
This was once considered in US.
2006-07-28 22:55:59 · answer #3 · answered by ed 7 · 0⤊ 0⤋
value added tax
2006-07-28 22:42:18 · answer #4 · answered by Anonymous · 0⤊ 0⤋
VALUE ADDED TAX
2006-07-29 00:28:50 · answer #5 · answered by navneeth 2 · 0⤊ 0⤋
its VALUE ADDED TAX
(a taxation process)
2006-07-28 23:21:14 · answer #6 · answered by s 1 · 0⤊ 0⤋