Case study on value added tax, stats and facts:

Pp Content analysis of qualitative data provided results to corroborate the results from statistical analysis of quantitative data. When points are utilized as a means of payments, they are expected to be subject to taxation. Chapter two which is the literature review tries to incorporate the views of other experts into the study thereby exposing the theoretical review and the empirical review.

Historically The Bahamas has had a limited tax regime, and a primary driver of VAT has been to broaden the tax base and increase government revenues to position the country for growth. Over 7, taxpayers registered online in the first 6 months - 1, more than estimated.

  • The main disadvantage of VAT is the extra accounting required by those in the middle of the supply chain; this is balanced by the simplicity of not requiring a set of rules to determine who is and is not considered an end user.

The story of Taxation, Curacao: The retailers have not paid any tax directly it is the consumer who has paid the taxbut the retailer has to do the paperwork in order to correctly pass on to the government the sales tax it has collected. Suppliers and manufacturers have the administrative burden of supplying correct state exemption certifications, and checking that their customers retailers are not consumers.

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To determine the nature and significance of TAX 2. Edward Elgar. In the diagram on the right: These funds will be used to reduce the Government deficit and advance public infrastructure and services throughout the nation. The research intends to investigate the performance of different sectors in the Nigerian economy in contributing to VAT revenue using Lagos state Federal Inland Revenue as a case study.

Deadweight loss: All rights reserved. In this chapter, I tried to identify the problem of the study, rationale of the study, significance of the study, background of the study and definition of terms. The manufacturer and retailer realize less gross margin from a percentage perspective. Please help us clarify the section. Human Development Reports http: Furthermore, the compliance factor that was more significant and indicated a more consistent association with measures of VAT compliance was the perception that collected VAT is a business asset.

Success stories so far Over 6, taxpayers registered online in the first 6 months - 1, more than estimated with 2, voluntary.

VAT (Value-Added Tax in The GCC)

The buyer can then be reimbursed for paying the tax, but only by successfully selling the value-added product to the buyer or consumer in the next stage. Tax Policy in an Era of Rising Inequality.

Woodland, McMillan, London.

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Chapter one which is the introduction further divided into five parts. In order to succeed in the study, hypothesis were formulated and questionnaires were constructed and chi-square were used to test the hypothesis.

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Typically if the online retail firm has no nexus also known as substantial physical presence in the state where the merchandise will be delivered, no obligation is imposed upon the retailer to collect sales taxes from "out-of-state" purchasers.

It does not create dis-incentive to efforts used in the case of direct taxes and hence does not affect the economic functions of the tax payers. This includes specific Microsoft exams, Microsoft tested products and customer references.

However, because of its particular mechanism of collection, VAT becomes quite easily the target of specific frauds like carousel fraudwhich can be very expensive in terms of loss of tax incomes for states. To fix this problem, nearly all countries that use VAT use special rules for imported and exported goods: Pp A general economic idea is that if sales taxes are high enough, people start engaging in widespread tax evading activity like buying over the Internet, pretending to be a business, buying at wholesale, buying products through an employer etc.

Having examined the above topic and identified the problems, recommendations were made on how this will be improved to ensure proper utilization of vat fund and increased vat revenue.

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Direct Taxes: Indirect Taxes can be avoided because it is payable only if one buys the commodities or enjoys the services in which the tax is imposed and it involves little administrative cost compared to direct taxes. The approach has helped the researcher to investigate the phenomenon of VAT compliance in a much broader way, and generated broader understanding and explanation of the factors influencing VAT compliance, which might be unique for developing countries.

For this reason, throughout the world, VAT has been gaining favor over traditional sales taxes. In addition, the retailer must keep track of what guideline thesis upsi taxable and what is not along with the various tax rates in each of the cities, counties and states for the 35, plus various taxing jurisdictions.

However this research aims to provide a comparative analysis of value added Tax Revenue among different sector in Nigeria. Limitations to the case study on value added tax edit ] In the above examples, we assumed that the same number of widgets were made and sold both before and after the introduction of the tax.

  • Ultimately, it taxes the same people and businesses the same amounts of money, despite its internal mechanism being different.
  • Value-added tax - Wikipedia
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  • However, there is strong opposition to this by many sub-national governments as it leads to an overall reduction in the revenue they collect as well as of some autonomy.

Thus, it is necessary to establish tax laws and regulations concerning customer loyalty programs. In the recent past, other forms of taxes were existent in Nigeria with the exception of VAT and they could not generate enough revenue for execution of government projects and programmes.

Based on the economic theory, findings indicate several but not all factors were associated with VAT compliant behaviour e. The study shall provide sectorial analysis of contributions of value added tax with a view to providing measures and policies to maximize value added tax and revenue in Nigeria 2.

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Dissertation zur erlangung des akademischen grades, the revenue from service made by mileage the points should be excluded from the tax base according to the reinterpretation of the Ministry of Strategy and Finance Case No.

The two are functionally equivalent. This work had been slit into five chapters. All exported goods are exempted from any VAT payments.

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However, there is strong opposition to this by many sub-national governments as it leads to an overall reduction in multi channel marketing case study revenue they collect as well as of some autonomy. We refer to a case in business practice in order to closely observe the appropriateness of the current taxation system. In view of this, the value added tax was introduced in Nigeria with effect from January 1, The VAT mechanism means that the end-user tax is the same as it would be with a sales tax.

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The study shall serve as reference point of informative for economist, Accountants, managers and government on issues regards Value Added Revenue in Nigeria 1. Vol I.

Topics Covered:

Correspondingly, some people are worse off by more than the government is made better off by tax income. If the cost of raw material production were shown, this would also be true of the raw material supplier's gross margin on a percentage basis. Total VAT collections are ahead of projections for the first six months of the year.

In what follows, the term "gross margin" is used rather than "profit". The precedence for the introduction of VAT in Nigeria was based on the fact that taxation as an instrument of fiscal policy is vital in generating revenue to finance the activities of the government, redistribute income, stabilize the economy as well as stimulate growth and development.


There might be a discussion about this on the talk page. The supply and demand economic model suggests that any tax raises the cost of transaction for someone, whether it is the seller or purchaser. The businesses are freed from any obligation to request certifications from purchasers who are not end users, and of providing such certifications to their suppliers, but they incur increased accounting costs for collecting the tax, which are not reimbursed by the taxing authority.

And to ensure that the low-income and poor consumers — who may not enjoy the benefits of lower income taxes as most likely they are already exempted from such payment in the first place - are not worse off with VAT, zero-rating some basic essential products and providing other targeted assistance programmes are necessary measures to help them.

Every year we have to qualify across a number of competencies to retain our Gold Certification. Adamawa State http: Profit is the remainder of what is multi channel marketing case study after paying other costs, such as rent and personnel costs.

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This included establishing a new Central Revenue Administration CRA to administer all taxes and implementing a revenue collection framework that was easy to use to encourage voluntary emotional abuse argumentative essay within a new taxpayer community. The researcher identified tax compliance factors from economic and behavioural theories of tax compliance and the general tax literature.

Where the VAT collected on behalf of the government output VAT in a particular month is more than the VAT paid to other persons input VAT in the same month, the difference is required to be remitted to government on a monthly basis by the taxable person.

This is known as a deadweight loss.

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  2. In principle, VAT applies to all provisions of goods and services.

Chapter five revealed the summary of the study, conclusion, recommendation and suggestion for further research. Assessment of the effect of Value Added Tax on consumption behavior: In conclusion, the overall findings of this study contribute to the limited body of knowledge of VAT compliance in developing countries context.

Value Added Tax 101: Understanding the Basic

It was observed that vat in Enugu state is asset in controlling inflation on the economy and vat decreases the demand for consumer items in Enugu state. The characteristics of effect of consumption tax is that it is not included in the price tag by the affected commodity rather it is added as a percentage of the total of invoice in the goods or services rendered.

Euro- Dutch Holdings. What is the sectorial contributions of Value added Tax revenue 4.

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Chapter two which is the literature review tries to incorporate the views of other experts into the study thereby exposing the theoretical review and case study on value added tax empirical review. Also VAT is payable in the currency of the transaction under individual goods or services are exchanged. Meanwhile, once value-added tax is imposed on the revenue made by mileage the pointsit would largely impact the industry offering loyalty programs to its customers.

Learn how and when to remove this template message Value-added tax avoids the cascade effect of sales tax by taxing only the value added at each stage of production. Examples of indirect taxes in Nigeria according to Oyebanji are; A.

Relevant statistical methods of analysis like mean, case study analysis methods deviation correlation and regression were use using the statistical package. There is a significant difference between VAT and Sales Tax for goods that are imported and exported: However this goal is still far from being achieved sector contributions to VAT revenue is pivotal to providing the needed revenue to government to impact on economic growth.

PREFACE In this research work, I have made attempts best problem solving companies explain my views and findings on the value added tax and its effect on the economy with particular reference to Enugu state.

VAT Case Studies - Ann L Humphrey

If the income lost by the economy is greater than term paper about business government's income; the tax is inefficient. In the previously shown examples, if the retailer fails to sell some of its inventory, then it suffers a greater financial loss in the VAT scheme in comparison to the sales tax regulatory system by having paid a higher price on the product it wants to sell.

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What is the nature of Value Added Tax? Sales tax is paid for the full price of the imported commodity, while VAT is expected to be charged only for value added to this commodity by the importer and the reseller. In principle, A level geography california case study applies to all provisions of goods and services. Consumption Tax: This finding adds to the existing evidence that shows most SMEs taxpayers fail to differentiate between business money and VAT money.


Chapter three of the study is the hypothesis, research methodology, sources of data and limitations of the study. April 5,London: Content analysis of qualitative data provided results to corroborate the results from statistical analysis of quantitative data.

At each stage of the production, the seller collects a tax on behalf of the government and the buyer pays for the tax by paying a higher price. The controversy arises business plan rbc the points earned in the tax-exempt business are exchanged for services, provided by the taxable operations. The same logic is to be implemented in the light of tax equality. That is, more is lost due to supply and demand shifts than is gained in tax.

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The study revealed that the implementation of VAT to go down well with Consumers, the scheme has to come with some compensatory measures such as the reduction of income taxes to put more money in the pockets of households and to boost their purchasing power.