The sales tax, which is systematically added to property and transaction taxes (excluding import sales tax), is in its economic effect a general consumption tax.
Proper tax Accumulation
A tax accumulation, i.e. the collection of the tax from the tax, is generally excluded. This is achieved through the input tax deduction. He authorizes the entrepreneur to deduct from the tax he owes on his sales the sales tax amounts (input taxes) that other entrepreneurs have openly invoiced for their taxable sales made to him. The sales tax on intra-Community acquisitions (acquisition tax) as well as the import sales tax that the entrepreneur has paid to the customs office when importing goods from non-EU countries is also deductible as input tax. For online tax services this is important.
A simplified schematic example, in which the path of a product is traced over several trading levels to the end consumer, should clarify this: Dealer A delivers goods to dealer B for € 100 plus € 16 sales tax (16 percent of € 100).
A pays € 16 sales tax to the tax office. B applies an input tax deduction to the tax office in the same amount. If B sells the item for € 140 plus € 22.40 sales tax (16 percent of € 140) to dealer C, B has to pay € 22.40 sales tax to the tax office for these sales, while C an input tax deduction in the same amount takes. If C sells these goods for € 200 plus € 32 sales tax (16 percent of € 200) to an end consumer, he has to pay € 32 sales tax to the tax office for the sales. This amount ultimately remains with the tax authorities. The example clearly shows that sales tax is a tax that is only realized when selling to an end consumer.
- If a commodity perishes or if it cannot be sold for other reasons, the tax authorities do not receive any tax.
Who owes the tax?
As a consumer tax, sales tax is designed to be borne economically by the consumer. Technically, however, it would not be possible to collect sales tax from the consumer. The sales tax debtor is therefore the entrepreneur who carries out sales. It is incumbent on him to pass the sales tax on to the recipients of his services as part of the prices. In many cases, entrepreneurs make this clear by showing the sales tax separately in their invoice for taxable sales. In invoices to other entrepreneurs, they are even obliged to submit an open tax statement on request.
One Example for You:
For example, an entrepreneur in the pre-registration period September 2000 made sales of € 100,000, which are subject to the tax rate of 16 percent, and has received invoices for services received in the same period in which input tax amounts totaling € 10,200 are calculated his payment burden for the pre-registration period September 2000 is as follows made quarterly advance notifications to be submitted by the entrepreneurs.