We have several gross receipts taxes in the US at the state or territory level. In Washington State, the tax is called a Business and Occupation Tax or B&O Tax. In the US Virgin Islands, it is called a Gross Receipts Tax. With the legalization of cannabis, several states apply gross receipts taxes to the different processes: manufacturing, retailing, etc.
In New Zealand the goods and services tax (GST) is 15% on almost all goods and services.
In New Zealand it is 15%. It covers all goods and services except financial transaction which are covered by a financial transaction tax. In Australia, our near neighbour they have a similar tax but with lots of exemptions. This is an expensive system to maintain compliance as there is a strong incentive to try and classify items into an exempt category. We have so far resisted the political advantage of announcing if elected we will exempt fruit and vegetable. Once this starts GST is broken for ever.
Australian GST (VAT) is 10% (but it is not it is 1/11th of the total purchase price) It depends on whether you mark up or mark down. It was intended to be included in the final price so that the customer did not have it billed independently.
What happened was something different. The tax is added as a final line item to an invoice, that is it is 10% of the invoice. Now everyone refers to the price and adds 'plus GST'.
Curiously businesses talk in GST excluded prices, knowing that the purchaser will claim the GST as a credit, but consumers talk in GST inclusive as the final price.
It has added a little complexity in that for example in Western Australia Local Authorities are required to consider prices excluding GST but contractors add GST to their invoices, which the Local Authorities then claim back.
Further traders include GST receipts into their cashflow as general receipts and bank then accordingly. In fact they are trustees for the net GST figure and the funds are the property of the ATO. Traders spend the money as part of their revenue and then are left in debt to the ATO for the difference.
To add further complication not all expenditure is subject to GST and therefore no GST credit accrues to the expense. It is all good fun until someone goes bankrupt.
Our tax legislators seem too innovative! As I understand it and with some simplifications, on certain services you have VAT 16% , not enough ( it seems) so you have complimentary tax 4% and 16% VAT on the complimentary one ! and so on ! waiting now for the complimentary on the complimentary .. with legislators compliments !
In Poland - 23% as base. For some kind of food - 5 or 8%, for hotel services 8%.
In Pakistan, Sales Tax is collected in VAT mode. Standard sales tax rate is 17% . However, few goods are taxable at higher rates and others at low rates. Services are provincial subject and subject to sales tax rates of provincial governments.
So, till now we can see that in Poland is one of the highest VAT rate
In Russia there is a VAT at the federal level.
Tax rate is 18%.
There is a list of goods and services with reduced tax rate, 10% (some food stuff, goods for kids, books, medical goods etc)
Should the Income Tax Rate not also be disclosed for an overall comparison? VAT may appear high in some countries but if it is accompanied by a low ITR then the balance may be somewhat restored.
In Nigeria, added value tax is the sales tax and it is 5% on goods except for non Vatable goods such as fuel.
