🚀 go-pugleaf

Per wrote:
> 
> 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.
 
Actually, the Canadian Federal Goods & Services Tax/Harmonized Sales Tax
(GST/HST) is a VAT as described above. Only provincial Retail Sales Tax
(PST or RST) is different.

As a result, I wouldn't say Canada is radically different.

Barry Doerbecker	doerbeck@bateman-mackay.com
Staff Accountant
_______
Bateman MacKay Chartered Accountants
Burlington, Ontario, Canada
Focussed on Research & Development Tax Credits
http://www.bateman-mackay.com

Disclaimer:  The views expressed are those of the author, and may not
represent the views of the firm.