What is VAT tax?
value added tax, sometimes simply known as VAT or goods and services tax, is a form of consumption tax, which is often stored on most consumption products. The tax of this type is considered an indirect tax in the fact that the tax collection does not apply to a single entity, but at different points during the production and distribution process. The tax rate depends on how the value of the product increases during each state of the production process. While any consumer who buys the product during production and distribution processes is required to pay the value added tax to the product, all taxpayers may be returned to VAT, except for the final consumer. In this way, only a consumer who buys the product for the last time and does not sell it to someone else, pays VAT tax without the possibility of refund.
common characteristics
Understanding how the VCZa tax holds the recognition that Ikýkoli produkt projde řadou fází nebo fází během výrobního procesu, jakož i v průběhu distribuce. Taxation occurs in each of these phases, based on the theory that a certain value is added to the product when it moves through the process. Any already evaluated and paid taxes are deducted from the assigned value that creates a cascade effect because the product continues to move through the production process. Nakonec je konečný zbytek daně z DPH placen spotřebitelem, který nakupuje a používá konečné dobro nebo službu.
Essentially, in addition to taxes paid in the purchase of goods, within the VAT system, any added value that the original buyer will receive later by selling the product is also taxed when the product is sold. Například, pokud výrobce koupí přízi od výrobce a změní ji na svetry, má na tento produkt přidanou hodnotu. Producent zase prodává svetry maloobchodníkovi. The original manufacturer of the sales of yarn must be paid by the producer VAT tax, the percentage of the difference between what she bought raw materials, and the price for whichsold yarn.
When the manufacturer sells sweaters, it pays VAT for the difference between the price at which he bought the yarn and what he sold finished goods, but is usually credited for the tax already paid by the manufacturer. When the retailer sells goods, taxes paid by both the manufacturer and the VAT manufacturer he owes. All these taxes are usually handed over to the consumer at the final price.
The VAT system is a common part of the tax structures of many nations, especially in Europe. With taxes rated at each stage of the production process, it is important that each supplier connected to the process properly and pays value added tax. For example, a company that produces fruit juice will pay VAT, but their rate can be reduced by the amount of a lot paid by the farm that produced raw fruit. As a result, no entity applies to all taxes associated with the production cycle; The end of the consumer rather applies to the largest part of the tax as previous taxpayers are most likely to be eligible forvrácení peněz.
cous and cons of
Někteří zpochybnili dopad systému daně z přidané hodnoty na obecnou ekonomiku. Although there is no doubt that the process generates revenue that governments can use well, there is some concern that the tax storage at every stage of production creates the load on suppliers and manufacturers that can eventually minimize their ability to expand their operations, hire other employees and contribute directly to the health of the economy. Tax supporters note that the cascading effect of the tax structure does on the contrary by the fact that it is possible to share the tax burden with all involved in the production process, not only with the entity who sells the final product.