A report on Tax and Value-added tax

Total revenue from direct and indirect taxes given as share of GDP in 2017
Map of countries and territories by their VAT status
Pieter Brueghel the Younger, The tax collector's office, 1640
A Belgian VAT receipt
Substitution effect and income effect with a taxation on y good.
Without any tax
Budget's constraint shift after an introduction of a lump sum tax or a general tax on consumption or a proportional income tax.
With a 10% sales tax
The Laffer curve. In this case, the critical point is at a tax rate of 70%. Revenue increases until this peak, then it starts decreasing.
With a 10% VAT
General government revenue, in % of GDP, from social contributions. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 20% by social contributions revenue.
A supply-demand analysis of a taxed market
Egyptian peasants seized for non-payment of taxes. (Pyramid Age)
Standard VAT or sales tax rate
Public finance revenue from taxes in % of GDP. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 32% by tax revenue.
General government revenue, in % of GDP, from VAT. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 3% by tax revenue.
Diagram illustrating deadweight costs of taxes
EU VAT Tax Rates
4 May 2010 "Campaña no más IVA" in Spain
National VAT act as a tariff on imports and their exports are exempt from VAT (zero-rated).

A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally.

- Value-added tax

Since governments also resolve commercial disputes, especially in countries with common law, similar arguments are sometimes used to justify a sales tax or value added tax.

- Tax
Total revenue from direct and indirect taxes given as share of GDP in 2017

5 related topics with Alpha

Overall
Federal Sales Taxes

Sales tax

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Federal Sales Taxes
Cash register receipt showing sales tax of 8.5%

A sales tax is a tax paid to a governing body for the sales of certain goods and services.

A value-added tax (VAT) collected on goods and services is related to a sales tax.

Trends in Tax Structures in OECD Countries

Indirect tax

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Trends in Tax Structures in OECD Countries
Tax structure per OECD country in 2018.
General government revenue, in % of GDP, from indirect taxes. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 0 % by tax revenue.

An indirect tax (such as sales tax, per unit tax, value added tax (VAT), or goods and services tax (GST), excise, consumption tax, tariff) is a tax that is levied upon goods and services before they reach the customer who ultimately pays the indirect tax as a part of market price of the good or service purchased.

Regressive tax

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A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases.

Payroll taxes, such as FICA and Unemployment Insurance in the United States, and consumption taxes such as value-added tax and sales taxes are regressive in that they both raise prices of purchased goods. Lower-income earners save and invest less money, so pay a larger proportion of their income toward these taxes, directly for sales tax and as the price increase required to make revenue covering payrolls for payroll taxes.

Flat tax

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A flat tax (short for flat-rate tax) is a tax with a single rate on the taxable amount, after accounting for any deductions or exemptions from the tax base.

Taxation systems such as a sales tax or value added tax can remove the tax component when goods are exported and apply the tax component on imports.

Avoiding the window tax in England

Tax avoidance

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Avoiding the window tax in England
Countries with politicians, public officials or close associates implicated in the Panama Papers leak on 15 April 2016

Tax avoidance is the legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable by means that are within the law.

A number of companies including Tesco, Sainsbury's, WH Smith, Boots and Marks and Spencer used a scheme to avoid VAT by forcing customers paying by card to unknowingly pay a 2.5% 'card transaction fee', though the total charged to the customer remained the same.