Value-added tax

Where the amount of value added tax included in a value is required the calculation is as follows ... 

This tax is similar to a sales tax. However, it is based on the amount by which a company has increased the value of a product, whereas a sales tax is based on the selling price. For instance, if a manufacturer spent 100 on the raw materials used in manufacturing a pump and then sold the pump for 275, the value-added tax would be a certain percentage of 175. For mining concerns the value-added tax would be the same as a sales tax, since minerals in their natural state are assumed to have no value. 

All aerated products are technically foams. One point of view is that aerated products are a way of making the public pay for air. This is not true in the case of many bakery products such as bread as the product is not sold by volume but by weight. The only food where this claim could be true is ice cream which is sold by volume not weight. Not only does the consumer pay for the air in ice cream as ice cream is subject to standard rate value added tax the consumer pays VAT on the air as well ... 

The index uses regular prices paid by the public, Value-Added Tax is included in the prices and subsidies are excluded. The price collection is done in the middle of the month. Prices are collected from a random sample of 600 retail stores, restaurants, and so on. 

The supplementary agreement - this allows the electrical contractor to recoup any value-added tax paid on materials at interim periods. 

High tech businesses will be exempt from value-added tax (VAT), business tax, and income tax for three years and then pay half of the normal 25% tax for the next five years. 

Purchase costs in this example do not include the cost of the cell press (see Section 6.1.2.10.2) nor do they include local taxes, e.g., value-added tax. Some allowance has been made, however, for the latter in the installed costs (see Section 6.1.2.3.viii). 

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