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What is sales tax, its types, how it is calculated and the concept of sales tax declaration


What is the sales tax?

Sales tax definition

What is the sales tax

Sales tax types

How sales tax is calculated

The concept of approving the sales tax

In this article we will talk about sales tax, what do you know about sales tax, how and how sales tax is calculated, and give a good idea of the concept of tax recognition so that you have a clear idea of sales tax

Sales tax definition

Taxation or collection is defined as a sum of money taken by the state from individuals or institutions and companies to finance its governmental institutions. This is the simplified definition of tax. The tax includes two kinds of direct tax, indirect tax and value added tax, and each type has many branches.

What is the sales tax?

Sales tax is called "Sale Tax," which is one of the direct taxes. It belongs to all types of sales, especially the sales tax for the customer or the end consumer. Here, the buyer is not the final consumer but the seller. It is imposed on the domestic and imported goods.

:Sales tax types

For sales tax, similar types are not limited to retail sale only, but also include:

  • Sales tax for manufacturers:- a tax for companies that manufacture anything and for each product
  • Wholesale tax:- This tax is for wholesalers and precedes retail tax
  • Retail tax:- The tax for the definition of the customer or final consumer

The sales tax types are three :-

  1. Indirect taxes: This tax applies to a small amount of products, such as gasoline, alcohol or similar
  2. Direct taxes: This tax applies to the consumer of goods without sales tax, and applies to large pieces such as cars, planes and boats
  3. VAT (Valuel Added Tax): Is an indirect tax levied on all goods and services purchased and sold by enterprises, with some exceptions 

?How sales tax is calculated

Sales tax is calculated directly as mentioned above, which means that tax collection is directly and immediately when you buy automatically, and to better understand it we will give an example:

In any restaurant invoice there is a note at the bottom of the tax, that is, the value of the invoice + the value of the tax to give the final output of the invoice, and this tax is given by the state so generally does not have a fixed value, and is considered directly for a certain percentage and at a certain time, Or on a profit basis

The concept of approving the sales tax

The sales tax shall be recognized by written recognition. The Registrar shall be required to submit it to the Tax Authority in each tax period determined by the State. The Registrar shall be required to submit it in a manner indicating all sales and purchases or all services rendered therein.

This declaration must be signed by the registrar or his agent. In case the registrar is a legal person, the declaration must be signed by his representative in law. The registrar must submit this declaration periodically even if he has not achieved sales during this tax period

 Such acknowledgment shall include all information pertaining to the registered person with regard to his / her own data, sales dates and all related to taxable services, purchase taxes and balance of prior periods

The tax declaration data is a traditional model containing the following : 

  1. Registered Person's Information: The name, address and name of the registered area, the tax registration number and the tax period in which the declaration was made
  2. Sales data: It must contain information about all the sales value of the taxable items before being added + the tax due and all related to export sales and exempt sales
  3. Purchase data: The value of all purchases is subject to deductible tax
  4. Tax payable: The difference between the tax payable on sales and the tax deducted from purchases
  5. Approval of the validity of the data: The Registrar shall acknowledge in writing the validity of the information that he mentioned and put his signature on it, stating its legal status with the date of signature.

Thus, the tax declaration data are complete and valid for filing in favor of collection and taxes

In this article, we provide you with everything you need to know about sales tax. Please be sure to take advantage of the information provided to you

Author: Nagma Asabah


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