A turnover tax is similar to
VAT, with the difference that it taxes intermediate and possibly capital goods. It is an
indirect tax, typically on an
ad valorem basis, applicable to a production process or stage. For example, when manufacturing activity is completed, a tax may be charged on some companies.
Sales tax
A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow the seller to collect funds for the tax from the consumer at the point of purchase. When a tax on goods or services is paid to a govern ...
occurs when merchandise has been sold.
By country
In
South Africa
South Africa, officially the Republic of South Africa (RSA), is the Southern Africa, southernmost country in Africa. Its Provinces of South Africa, nine provinces are bounded to the south by of coastline that stretches along the Atlantic O ...
, the turnover tax is a simple tax on the gross income of small businesses. Businesses that elect to pay the turnover tax are exempt from
VAT. Turnover tax is at a very low rate compared to most taxes but is without any deductions.
In
Ireland
Ireland (, ; ; Ulster Scots dialect, Ulster-Scots: ) is an island in the North Atlantic Ocean, in Northwestern Europe. Geopolitically, the island is divided between the Republic of Ireland (officially Names of the Irish state, named Irelan ...
, turnover tax was introduced in 1963 and followed by wholesale tax in 1966.
Both were replaced in 1972 by VAT, in preparation for Ireland's accession to the
European Communities
The European Communities (EC) were three international organizations that were governed by the same set of Institutions of the European Union, institutions. These were the European Coal and Steel Community (ECSC), the European Atomic Energy Co ...
, which prohibited both taxes.
See also
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Cascade tax
*
Goods and Services Tax
*
Gross receipts tax
A gross receipts tax or gross excise tax is a tax on the total gross revenues of a company, regardless of their source. A gross receipts tax is often compared to a sales tax; the difference is that a gross receipts tax is levied upon the seller o ...
*
Sales tax
A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow the seller to collect funds for the tax from the consumer at the point of purchase. When a tax on goods or services is paid to a govern ...
*
Turnover tax in the Soviet Union
*
Value-added tax
A value-added tax (VAT or goods and services tax (GST), general consumption tax (GCT)) is a consumption tax that is levied on the value added at each stage of a product's production and distribution. VAT is similar to, and is often compared wi ...
References
Sales taxes
Transfer tax
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