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An indirect tax (such as a sales tax, per unit tax, value-added tax (VAT), excise tax, consumption tax, or 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. Alternatively, if the entity who pays taxes to the tax ...
[98] [99] [100] However, two states enacted a form of VAT in lieu of a business income tax. Michigan used a form of VAT known as the "Single Business Tax" (SBT) from 1975 until voter-initiated legislation repealed it, replaced by the Michigan Business Tax in 2008. [101] Hawaii has a 4% General Excise Tax (GET) that is charged on gross business ...
Map of the world showing national-level sales tax / VAT rates as of October 2019. A comparison of tax rates by countries is difficult and somewhat subjective, as tax laws in most countries are extremely complex and the tax burden falls differently on different groups in each country and sub-national unit.
The U.S. imposes a 15% withholding tax on the amount realized in connection with the sale of a U.S. real property interest unless advance IRS approval is obtained for a lower rate. [15] Canada imposes similar rules for 25% withholding, and withholding on sale of business real property is 50% of the price but may be reduced on application.
For example, 5.5% withholding income tax is applicable on commercial imports and is payable at the import stage. This 5.5% withholding tax will be considered as minimum tax and Corporate Tax is also applicable, whichever is higher will be the tax liability, on this business. [9]
The third largest source of government revenues is value-added tax (VAT), charged at the standard rate of 20% on supplies of goods and services. It is therefore a tax on consumer spending. Certain goods and services are exempt from VAT, and others are subject to VAT at a lower rate of 5% (the reduced rate) or 0% ("zero-rated").
EU VAT Tax Rates. The European Union value-added tax (or EU VAT) is a value added tax on goods and services within the European Union (EU). The EU's institutions do not collect the tax, but EU member states are each required to adopt in national legislation a value added tax that complies with the EU VAT code.
Withholding taxes are often imposed at rates differing from the prevailing income tax rates. [203] Further, the rate of withholding may vary by type of income or type of recipient. [ 204 ] [ 205 ] Generally, withholding taxes are reduced or eliminated under income tax treaties (see below).