Discussion on Sales Taxes Assignment

In countries general sales tax is different from other countries' sales tax, some goods are subject to the general sales tax while others are not subject to the general sales tax. General sales tax is different from Value Added Tax; the retailer collects sales tax during the final sale in the supply chain of the goods via the end consumer. VAT is collected by all the sellers from the manufacturers, distributors, and retailers for all taxable sales. General sales taxes are levied on goods and services either as a percentage or a fixed amount per unit of the goods and services sold. Different goods and services are subjected to different and selective sales taxes (Alavara.com, 2020).

 In countries, general sales taxes collected by different states provide more revenue than other sources of tax deductions including property taxes, corporate taxes, and individual income taxes. Also, general sales taxes in different states are different and the rate range from 2.9% and 7.25%. This paper will evaluate reasons as to why some goods and services are subject to general sales taxes, and others are not subjected to different states in the countries.

Most of the tangible goods are taxed in the countries, but in most states foods products purchased for home, Countries are not subject to general sales taxes. A few of the states that tax food products they do it at very low rates and also some offer tax credits for the people with low income to counterbalance the taxes. Also, non-prescription drugs are not subjected to general sales taxes. Most of the services provided in the countries are also taxable, but a few are exempt in some states such as professional services. The first factor that determines whether a certain product is subject to sales taxes is the type of the product (CDPR.Org, 2019).

References of Sales Taxes Assignment

Alavara.com. (2020). International VAT and GST rates for 2020. Retrieved from https://www.avalara.com/vatlive/en/vat-rates/international-vat-and-gst-rates.html

CDPR.Org. (2019). Sales Tax on Services and Value Added Tax. Retrieved from https://cdpr.org.pk/sales-tax-on-services-and-value-added-tax/