|Term of the Day|
Ad Valorem Tax levied on sale of goods or services. Unlike a value added tax (VAT, levied only on the net increase in price at every point a good or service moves from one seller to the next purchaser) sales tax is a cost and involves double taxation (tax on tax) because it is imposed on the gross price (seller's net cost price + sales-tax paid by the seller + seller's profit) at each point ...
There was a sales tax that we had to pay to the state which was only a small amount of money compared to our profits.
Wednesday, 8 April 2015
SALES TAX AND SUPPLY CURVE
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