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The economic effects of the value added tax system first appearance the original economic value added tax was formulated by A french economist terminated half a 100 ago in 1954.
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Which is the latest state to introduce VAT?
Uttar Pradesh is the latest which has introduced VAT on January 1, 2008. To avoid double taxation and tax cascading and have a simple and progressive taxation system for goods as well as services, it is proposed to introduce a combined national level goods and services tax (GST).
How is VAT different from Net Value Added Tax?
VAT is distinguished from turnover tax where each transaction is taxed on its gross value, in contrast to tax on net value added as in VAT. A VAT can be designed to have different forms, exemptions, and rates. The popularity of VAT with authorities is mainly due to its administrative advantages.
What's the difference between Value Added Tax and sales tax?
Value-added tax, popularly known as VAT, belongs to the family of sales taxes. A general sales tax and turnover tax can be compared with value-added tax. A general sales tax is a tax on sales transactions but it is applied at only one stage of business activity right from the manufacturer to the retailer.
Last Update: Oct 2021
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