🚀 go-pugleaf

On Wed, 07 Apr 1999 06:22:52 GMT, ttoews@telusplanet.net (Tony Toews)
wrote:

>Folks
>
>I'm a programmer and I've got to setup some systems to handle sales
>taxes.  So I'd like to setup as complex a system as I'll need right
>now which will last me a long time into the future.   Well, ok, maybe
>only to the next budget in some govt somewhere.  <sigh>
>
>So I'd appreciate some examples from around the world. I'll attempt to
>summarize any responses and post on a website.  With all kinds of
>disclaimers about how this is from a programmers perspective and you
>getta check these out yourself.

>Hows about other countries?   

The sales tax systems of the US and Canada differ radically from the
Value Added Tax (VAT) system used in the EU member states. The EU has
harmonised the VAT through the so-called Sixth VAT Directive.

The basic feature of the VAT is that tax is charged on all sales,
whether to companies or consumers. The tax paid is deducted from the
tax charged and the surplus is paid to the government. The seller thus
pays tax only on the value he adds to the product; hence Value Added
Tax. The consumer of course cannot deduct any VAT and therefore ends
up with the full tax bill.

The main advantage of the VAT system is that the seller is not
required to keep track of the tax status of the buyer, as is the case
in sales tax systems. The VAT also (in theory) simplifies the task of
the authorities to monitor compliance, since the seller's reported VAT
can be compared to the buyer's invoices. 

The main disadvantage of the VAT is the extra strain it puts on
companies' cashflow. Especially small businesses can experience
problems when they are required to pay VAT on sales for which they
have not yet received payment in cash.

>So far it would appear I need only two rows/layers of sales taxes
>although with many different taxing authorities, percentages and the
>odd calculation quirk in each layer.
>
>Are there any websites out there with multi country sales tax
>discussions?

The big accounting firms, such as Ernst & Young, KPMG, et al., cover
some of these problems on their websites.

>Thanks, Tony

Regards,

Per Andersson
jur kand, LL.M.
Stockholm
Sweden