Turnover tax
Lua error in package.lua at line 80: module 'strict' not found. 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 occurs when merchandise has been sold.
In South Africa, the turnover tax is a simple tax on the gross income of small businesses. Businesses who elect to pay the turnover tax are exempt from VAT. Turnover tax is at a very low rate compared to most taxes, but it is calculated on gross income without any deductions.[1]
In the Republic of Ireland, turnover tax was introduced in 1963,[2] and followed by wholesale tax in 1966.[3][4] Both were replaced in 1972 by VAT,[5] in preparation for Ireland's accession to the European Communities, which prohibited turnover tax and wholesale tax.[4][6]
References
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