What is tax on goods and services?

goods and services tax (GST) is a type of consumption tax that adds to the purchase price of certain products or services such as clothing, food and gasoline. Tax money is usually collected by the company selling a tax product or service and income is usually handed over to the local administration. GST revenues are most often used to improve the local community in different ways, such as generating income that can be used to increase the activities of schools in the city. Depending on the country where the tax is charged, the system can be set up as a type of value added tax, which means that the tax is charged every time the product or service is sold at a higher price, creating a difference between GST and one -time tax. There are arguments for and against this tax system, especially in countries where the tax is used in addition to income tax.

in countries that implemented this tax system such as Australia, Canada, New Zealand and Singapore, GST is generally a fraction of the total cost of the item. In some of theEmích was created a tax to replace the hidden tax tax tax, which was often charged at a much higher rate than compensation. This change in tax systems builds a tax burden on the shoulders of the consumer, unlike the manufacturer of goods and services.

GST Míra differs greatly between countries and is determined by government income bodies. Rates can range anywhere from the barely undisputed percentage to a significant part of the total price of the item. The funds collected from the goods and services are used by these governments in different ways, from the help of subsidizing health care to reimbursement for the operating costs of the government.

As well as the rate of tax on goods and services may differ between governments, products for which IT is charged and when charged can also vary. One of the common variations is whether value added taxes (VAT) apply to the tax on the country's goods and services. The general rule of tax added taxY basically, it states that any added value that the original buyer gained later by selling the product will also be taxed when selling the product. For example, if you buy a few shoes for $ 50 in USD (USD), it is taxed for this purchase, and if it sells them for $ 75 later, it created an added value of $ 25. He will be charged a value added tax of $ 25, and a person who buys a shoe will be charged a total of $ 75.

In Australia, New Zealand and Singapore, to name at least some, GST is charged as VAT in GST will be charged every time the product is sold for higher value. As a result, more than one person or party can pay tax on goods and services for the same product or service. In Canada, the VAT Essentiavy system was that taxpayers allowed GST deducts to be deducted on products that were later sold, thereby liability for paying GST to the final buyer.

ongoing debate

public opinion tax onGoods and services differ very much and in some countries the source of the heated controversy is a source. Citizens who support tax often refer to positive aspects for community and nation as a means of financial support. Many of them feel that the implementation of this tax system could encourage citizens to save more and spend less, which could lead to a more efficient economy. Others feel that the higher tax rate of goods and services could be difficult to pay for lower class people, especially if it is required in addition to existing income tax.