What would the tax rate be under a VAT? Q.What would the tax rate be under a VAT? A.The rate of a value-added tax depends on how much revenue it is intended to raise and how broad the VAT base is. The lower the revenue target and the broader the base, the lower the tax rate will be. Read more about What would the tax rate be under a VAT?
How would a VAT be collected? Q.How would a VAT be collected? A.Most countries with a value-added tax employ the credit-invoice method. Under this method, businesses are taxed on their sales at each stage of production but obtain credits for the taxes they paid on inputs. Read more about How would a VAT be collected?
What is the difference between a tax-exclusive and tax-inclusive sales tax rate? Q.What is the difference between a tax-exclusive and tax-inclusive sales tax rate? A.It depends on whether the tax is reported relative to the pre-tax or post-tax price. Read more about What is the difference between a tax-exclusive and tax-inclusive sales tax rate?
