Sales tax is what type of tax. Sales Tax: Return
The fundamental decision to allow Russian regions to introduce a sales tax (SST) of up to 3% was made at a meeting with the head of state on Wednesday, a source in the financial and economic bloc of the government told Interfax. The Ministry of Economic Development and the Ministry of Finance objected to the introduction of a sales tax, proposing an alternative - to increase VAT by 2 percentage points from 2015 - to 20%. In particular, the Presidential Assistant spoke in support of this decision Andrey Belousov. The President supported the sales tax, two federal officials and an official from the government’s financial and economic bloc told Vedomosti.
Meanwhile, just yesterday Deputy Prime Minister Dmitry Kozak assured that in Russia there is no political decision to introduce new taxes and, most likely, they will not be introduced. According to him, all federal authorities and regional authorities would like to receive more money to finance certain activities, but they must make decisions based on the capabilities of the country’s economy so as not to disincentivize further economic development.
The Ministry of Finance has many arguments against the NSP. First Deputy Minister of Finance Tatiana Nesterenko I recently announced two main ones. Firstly, the sales tax is less beneficial to the budget: according to officials, in the next three years it will bring 195 billion, 211 billion and 230 billion rubles, respectively, and an increase in VAT by 2 percentage points will bring about 500 billion rubles in 2015 alone . Secondly, the Ministry of Finance expects problems with the collection of this tax. NSP was introduced in the early 90s and in the 2000s, and then its collection rate was very low - about 30%. True, now the figure may be higher, since the share of large stores and chains in trade turnover has increased to 22%, but will not exceed 50%, as calculated by the Center for Macroeconomic Research (CMR) of Sberbank. According to analysts’ calculations, the introduction of a sales tax at the level of 3% could give the budget a maximum of 350 billion rubles (assuming 50%), a minimum of 150 billion (if only large retail chains pay the tax in full). Revenues from increasing VAT (at two rates - from 10% to 12% and from 18% to 20%) will amount to 375 billion rubles, while tax collection is estimated by the government at 94%, CMI experts note.
The advantage of the NSP is that it is credited to the regional budget, since tax increases are aimed at saving the regions (due to the implementation of presidential decrees and the fall in income tax revenues, their deficits are growing significantly). However, the large scale of evasion of the payment of income tax will not allow solving the problem of regional budgets, experts from the Sberbank Center for Research and Development are confident. Those regions that have high indicators for the share of retail turnover generated by retail chains will benefit. According to forecasts, St. Petersburg (share - 53%), Leningrad region (41%), Moscow region (33%), as well as Altai and Kamchatka Territory - in all regions at the end of 2013 there was a budget surplus. And in the problematic North Caucasus federal district and in Yakutia this figure is below 10%. The tax will only help the Altai Territory, Adygea and Tatarstan: they have a relatively high rate and have a budget deficit. But the deficit is small, and the effect of increasing VAT would be the same for their budgets.
Opora Rossii believes that the introduction of a sales tax is fraught with cascading taxation: since it is impossible to identify the “end consumer”, components subject to GST will be taxed again as part of a product made from these components. In addition, small businesses using special tax regimes will have to keep records of revenue and use cash register equipment, and these are additional costs. Thus, the specified amounts will be collected from taxpayers, in to a greater extent from retail trade. " It is not possible to talk about exact figures, since sales tax may be different cycles production, and also transferred to the end consumer", - pointed out the president of Opora Alexander Brechalov in letters to Deputy Prime Minister Igor Shuvalov and presidential aide Andrei Belousov. The dubious effect for the budget system from the introduction of a new tax is confirmed by the head of the Center for Expertise and Analytics of Entrepreneurship Problems “Supports of Russia” Ivan Efremenkov. « The main retail turnover in effect objective reasons takes place in three subjects of the Federation - Moscow, Moscow region, St. Petersburg. This means that most of the tax will be collected in these regions. Thus, the introduction of a sales tax will not lead to a fair distribution of additional tax revenues between entities Russian Federation ", he comments.
Let us remind you: the sales tax is not the only tax idea of the authorities: along with it, an increase in contributions to the Compulsory Medical Insurance Fund is being prepared (payment of a current contribution of 5.1% from the entire wage fund, and not up to a certain threshold). And then presidential elections In 2018, it is possible to increase VAT and personal income tax by 2 percentage points to 15% and 20%, respectively. If all these initiatives are implemented, the tax burden in Russia will increase by 1.7% of GDP, according to the conditions of 2013 it would have been 37.5%, he calculated Andrey Chernyavsky from the Development Center High school economy. In addition, the Russian authorities discussed as an alternative to increasing tax burden the issue of spending the Reserve Fund. The Ministry of Finance is categorically against it - such a mechanism will not help for long, and unpopular decisions in tax policy will still have to be made, said First Deputy Minister of Finance Tatyana Nesterenko. Member of the Tax Committee of "Opora Rossii" Mikhail Orlov I am sure that business will be categorically against raising taxes in any form and will respond by raising prices and layoffs. " At the same time, we must understand that spending the Reserve Fund on current tasks provides only a temporary respite. If there is an urgent need to solve immediate problems, you can resort to reserves. But they tend to run out, so in the future we should consider only taxes as a source of budget replenishment - he explained to Expert Online. – In a good way, we need to conduct an audit of budget expenditure obligations and find ways to reduce them».
The increase in the tax burden from the introduction of a sales tax is estimated by CMI experts at 0.26% of GDP, and from an increase in VAT - 0.58%. However, the overall effect on the economy will be more painful if a sales tax is introduced, they warn. With an increase in VAT by 2 percentage points, the price jump would not exceed 1.7%, with the introduction of a sales tax - by a maximum of 2.1%. The tax will primarily affect consumers - manufacturers will simply raise prices, says the executive director of the Association of Retail Trade Companies Andrey Karpov. « With huge turnover, the profitability of the business of retail chains is low - about 5-7%, so they will have no choice but to shift the additional burden onto the shoulders of consumers, - he explained to Expert Online . – And to replenish regional budgets, we need to more actively identify sectors of the economy operating in the shadows».
A rise in prices will lead to a drop in retail sales. In a scenario with a 0.8% increase in VAT, this would lead to a deduction of 0.3-0.4 percentage points from GDP growth, and with the introduction of a sales tax of 1%, a deduction from GDP growth of 0.5 percentage points ., assessed by CMI experts. If the tax were introduced this year, it would wipe out economic growth. Deputy Head of the Department of Corporate Governance at Higher School of Public Administration RANEPA Lyudmila Dukanich notes that attempts to replenish the budget by increasing the tax burden are not always successful. " Of course, this will have a positive impact on regional budgets, which will have the opportunity to collect income tax. But this burden will fall on the same object as the VAT, which is not welcome in the theory of taxation, and in world practice the combination of these taxes is very rare. It is clear that business will shift this burden onto the shoulders of consumers, and since household incomes have hardly been growing recently, this will have a negative impact on the economy", she explained to Expert Online .
Reference
Sales tax first appeared in last years existence of the USSR in 1991 and was canceled in Russia in 1992. In 1998 it was introduced again - as regional tax with a maximum rate of 5%. Since 2004, it was abolished by a decision of the Constitutional Court (including due to difficulties in determining the object of taxation). The introduction of a sales tax was discussed in December 2012 by Prime Minister Dmitry Medvedev, his first deputy Igor Shuvalov and the then Minister of Economic Development, and now presidential assistant Andrei Belousov. The latter said that in some regions it is possible to charge both VAT and sales tax.
A tax levied on the sale of a product as an addition to its price. May be paid directly by the buyer or seller as a percentage of turnover. See TAXES.
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SALES TAX
regional tax; is established by the Tax Code and the laws of the constituent entities of the Russian Federation, is put into effect in accordance with the Tax Code, laws of the constituent entities of the Russian Federation and is obligatory for payment on the territory of the corresponding constituent entity of the Russian Federation. When establishing a tax, a subject of the Russian Federation determines the tax rate, the procedure and timing of its payment, and the reporting form for this tax (Article 347 of the Tax Code). The tax is levied in accordance with Chapter 27 of the Tax Code (introduced by Federal Law No. 148-FZ of November 27, 2001; expires on January 1, 2004). Until January 1, 2002, it was collected on the basis of the Federal Law of July 31, 1998 No. 150-FZ “On Amendments and Additions to Article 20 of the Law of the Russian Federation “On the Fundamentals of the Tax System in the Russian Federation.” Refers to consumption taxes (indirect taxes). Taxpayers are organizations and individual entrepreneurs. Organizations and individual entrepreneurs are recognized as taxpayers if they sell goods (works, services) on the territory of the constituent entity of the Russian Federation in which the specified tax is established (Article 348 of the Tax Code). Object of taxation - sales operations individuals goods (works, services) on the territory of a constituent entity of the Russian Federation. Operations for the sale of goods (works, services) are recognized as an object of taxation if such sales are carried out in cash, as well as using payment or credit bank cards (Article 349 of the Tax Code). Transactions involving the sale of the following goods (works, services) to individuals are not subject to taxation (exempt from taxation):
Bread and bakery products, milk and dairy products, vegetable oil, margarine, flour, poultry eggs, cereals, sugar, salt, potatoes, baby and diabetic food products;
Children's clothing and shoes;
Medicines, prosthetic and orthopedic products;
Housing and communal services, services for renting residential premises to the population, as well as services for providing housing in dormitories;
Buildings, structures, land plots and other objects related to real estate, as well as securities;
Vouchers (courses) to sanatorium-resort and health-improving institutions, recreational institutions sold to people with disabilities;
Goods (works, services) related to educational, training and production, scientific or educational process and produced by educational institutions;
Educational and scientific book products;
Periodicals, with the exception of periodicals of an advertising or erotic nature;
Services in the field of culture and art provided by institutions and organizations of culture and art (theatres, cinemas, concert organizations and groups, club institutions, including rural ones, libraries, circuses, lecture halls, planetariums, culture and recreation parks, botanical gardens, zoos) when they conduct theatrical, entertainment, cultural and educational events, including operations for the sale of entrance tickets and subscriptions;
Child support services preschool institutions and care for the sick and elderly;
Passenger transportation services common use municipality(except for taxis), as well as services for transporting passengers in suburban transport by sea, river, rail and road transport;
Services provided by credit institutions, insurers, non-governmental pension funds, professional participants in the securities market within the framework of their activities subject to licensing, as well as services provided by bar associations;
Ritual services of funeral homes, cemeteries and crematoriums, services for conducting rites and ceremonies by religious organizations;
Services provided by authorized government bodies and bodies local government, for which the corresponding types of duties and fees are charged. If a taxpayer carries out transactions that are subject to taxation and transactions that are not subject to taxation, the taxpayer is obliged to keep separate records of such transactions (Article 350 of the Tax Code). Tax base - the cost of goods (work, services) sold, calculated on the basis of applicable prices (tariffs) including VAT and excise taxes (for excisable goods) without including tax (Article 351 of the Tax Code). The tax period is established as a calendar month (Article 352 of the Tax Code). The tax rate is established by the laws of the constituent entities of the Russian Federation in an amount not exceeding 5%. The establishment of differentiated tax rates is not allowed:
In relation to operations for the sale of certain types of goods (work, services) within the tax rate;
Depending on who is the taxpayer or the buyer (customer, sender) of goods, works, services (Article 353 of the Tax Code).
The tax amount is calculated as the corresponding tax rate percentage of the tax base. The tax amount is included by the taxpayer in the price of goods (work, services) presented for payment to the buyer (customer, sender). The tax is payable at the place of operations for the sale of goods (work, services) subject to taxation in accordance with the Tax Code. If, in accordance with the terms of the commission agreement (authorization agreement, agency agreement), the actual sale of goods (work, services) to buyers is carried out by the commission agent (attorney, agent) and cash for the sold goods (work, services) are received at the cash desk (to the bank account) of the commission agent (attorney, agent), the obligation to pay tax and transfer it to the budget rests with the commission agent (attorney, agent), who is recognized in this case as a tax agent. In this case, the amount of tax is calculated based on the full price of the goods (works, services), including the remuneration of the commission agent (attorney, agent). The principal (principal, principal), when receiving proceeds from a commission agent (attorney, agent), does not pay tax if this tax was paid by the commission agent (attorney, agent). If, in accordance with the terms of a commission agreement (agency agreement, agency agreement), the actual sale of goods (work, services) to buyers is carried out by a commission agent (attorney, agent), and the funds for the sold goods (work, services) are received at the cash desk (at current account) of the principal (principal, principal), the tax is paid to the budget by the principal (principal, principal). In this case, the amount of tax is calculated by the committent (principal, principal) based on the full price of the goods. The date of operations for the sale of goods (work, services) recognized as an object of taxation is the day of receipt of funds for sold goods (work, services) to bank accounts, or the day the proceeds are received at the cash desk, or the day the goods (work, services) are transferred to the buyer (Article 354 of the Tax Code). The specifics of calculating and paying tax at the location of separate divisions of an organization are established in Art. 355 NK. An organization carrying out operations for the sale of goods (work, services) through its separate divisions located outside the location of this organization pays tax on the territory of the constituent entity of the Russian Federation in which operations for the sale of goods (work, services) are carried out, based on the cost of goods sold through This is a separate division of goods, works, and services. With the entry into force in the territory of the corresponding constituent entity of the Russian Federation, sales tax will not be levied (Federal Law of November 27, 2001 No. 148-FZ):
Regional taxes and fees provided for in paragraphs. "g" clause 1 art. 20;
Local taxes and fees provided for in paragraphs. “g”, “e”, “i”, “k”, “l”, “m”, “n”, “o”, “p”, “r”, “s”, “t”, “y” "", "f", "x", "ts" clause 1, Art. 21 of the Law on the Fundamentals of the Tax System.
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Sales tax is an indirect payment imposed on the buyer. It is usually expressed as a percentage of the cost of the product, which the seller is obliged to contribute to the budget, but the costs of paying it are ultimately borne by the end consumer. Sales tax is a popular tool of fiscal services in many countries around the world. Sales tax is not necessarily charged on all items sold. Often, individual goods are subject to taxation, and some groups of them – socially significant ones – are exempt from this tax.
In most countries, sales tax is levied on the buyer, not the seller, whose job is to transfer the amount received into the budget. In many countries, taxes are imposed on the sale of not only goods, but also services. Since sales tax is levied only on the final consumer, intermediate consumers may not pay it; to do this, they are required to provide a certificate of resale of the product or service or prove that the goods purchased were included in the newly created product that was sold.
Taxation on value added and sales
In the past, sales tax was the most popular form of indirect taxation. But over time and the improvement of fiscal authorities, the value added tax, which is in a certain way an expanded and improved version of the sales tax, has become very popular. At the moment, the process of gradual transition of countries around the world to taxing value added, rather than the gross amount of goods sold, continues.
About twenty percent of all tax revenue in the world is provided by value added tax. At the same time, some countries continue to remain true to their tax traditions and do not seek to abolish the sales tax. The most famous and a shining example is the US tax system. In this country, the position of traditionalists is still strong and they resist many changes. Therefore, the tax system of this country retains some archaic features.
Assessing the impact of sales tax on the economy and its feasibility
Economic research from the Organization for Economic Cooperation and Development argues that taxation on the sale of goods and services is one of the taxes that has the least harmful impact on the economy and economic growth. The organization’s experts came to this conclusion after studying a variety of various types taxes and practice of their application.
According to many researchers, this type of taxation is outdated, since it does not imply differentiated taxation of persons with different levels income. The tax scale for all categories of the population is the same. However, taxation on sales is a very effective and easy method that causes minimal harm to the economy so that it can be easily abandoned.
Many countries are trying to compensate for the inability to differentiate between population groups with different income levels when paying this percentage to the treasury by abolishing its collection on sales of a number of goods considered most in demand by people. This means, first of all:
- cloth,
- medicines,
- social housing rental.
It is these goods that account for the majority of consumption by low-income groups. But a car no longer belongs to the group of social goods.
It does not matter how payment for the goods was made - in cash or by bank transfer. Sales tax will be charged in any case. Even when payment is made in kind in goods or labor, or when other property is involved in payment, a sales tax is expected to be paid. However, almost all such transactions are not registered and therefore remain in the shadows for the tax authorities, and, accordingly, sales tax is not paid on them in practice.
History of sales tax in Russia
For the first time, sales tax began to be collected in Russia in 1991. Then it was introduced in the USSR. The tax rate was five percent, and the procedure for its collection was determined by Union legislation. But after the introduction of the sales tax, the USSR did not last long and collapsed at the end of that year. In independent Russia, already on January 1, 1992, they adopted their own tax system, which did not provide for a sales tax.
In 1998, taxation of this type was introduced in Russia for the second time. This time it was made regional, that is, the proceeds from it went to local and regional budgets. At the same time, the subjects of the federation were allowed to determine the rate of this taxation themselves or completely refuse to collect it, but the rate could not exceed five percent. Most regions, experiencing an acute shortage of funds for social security and other local needs, have established a maximum rate of this taxation. Forty percent of the collection from this tax went to regional budgets and 60 percent to local ones.
A large list of socially significant goods and services not subject to this tax was approved. First of all, this category of goods included:
- Basic food products.
- Cloth.
- Medicines.
- Prostheses.
- Housing and communal services and house rental, housing provision, sold apartment, land and other transactions in which real estate was involved,
- Transportation of passengers in public urban transport and road, rail, river and sea transportation of passengers by intercity transport.
Services provided by credit institutions, insurance companies, non-state pension funds, lawyers and others were also not subject to taxation.
Most regions introduced fees for the sale of goods and services in 1998 and 1999. In 2002, the Tax Code of the Russian Federation was adopted, the 27th chapter of which subsequently regulated the collection of this interest to the treasury. However, already at the time of the adoption of the Tax Code it was known that this type of taxation would be levied only for the next two years. From January 1, 2004, sales tax is not levied on the territory of the Russian Federation.
Possibility of tax return for sales of goods and services
In mid-August 2014, the Ministry of Finance developed a project to introduce a sales tax. The project was submitted for consideration to the Government of the Russian Federation. According to this project, regions would have the right to introduce such taxation at a rate of up to 3%. According to Finance Minister Anton Siluanov, the introduction of this collection of funds would increase regional budget revenues by up to 200 billion rubles.
Value added tax.
In accordance with the European Commission, an interstate structure engaged in the development of member states, “Value added tax (VAT) is the main consumer tax,” () the purpose of which is to tax all business entities that are involved in the process of manufacturing and selling goods and providing services (general tax) and the tax imposed on consumers (consumption tax).
Schematic representation of VAT collection:
Sales tax.
This tax represents a percentage of income imposed on the retail sale of goods or services, and is in the nature of a transaction tax. In this case, sales tax can have a cascading nature, when the obligation to pay sales tax is borne by all intermediaries (without the right of offset as with VAT), or the obligation to pay sales tax is borne only by the retailer who sold the goods directly to the consumer. Unlike VAT, the Sales Tax taxpayer transfers the entire tax amount to the budget without any offset.
Cascade and non-cascade types of sales tax.
An example of a cascading sales tax (SST).
At an income tax rate of 2%, a fabric manufacturing company sells the fabric it produces at a price of 100 tenge, and includes the tax in the commodity value of the fabric for a design house, which ultimately purchases this fabric at a price of 102 tenge (100 tenge + 2% sales tax) . Designers create designs and sew clothes, wanting to receive an income of 48 tenge net without taking into account acquisition costs, so the price of a designer house for clothes without taking into account sales tax will be 150 tenge (102 tenge (cost of purchasing fabric) + 48 tenge), and the retail store will pay the designers for clothes already 153 tenge (150 tenge + 2%). The interest of the retail store is 37 tenge and as a result, the cost of clothing in the retail store without taking into account sales tax will be 190 tenge (153 tenge + 37 tenge), but the end consumer will purchase it for 193.8 tenge (190 tenge + 2%).
As a result, in the state budget the amount of 8.8 tenge will be transferred (2 tenge + 3 tenge + 3.8 tenge), which will actually be 4.6% (8.8/190).
Schematically it will look like this:
Non-cascading sales tax.
This type of tax is widely used in the USA. Tourists who made purchases in US retail stores for the first time were always perplexed by the difference in price between the cost indicated on the price tag and the amount required for payment. The reason for this difference is sales tax, which is automatically charged at checkout, increasing your bill. It is noteworthy that, unlike its cascade counterpart, the taxpayer is only the business entity that sells the product or service to the end consumer. This tax is not federal and is transferred to state income.
Schematically it looks like this:
At the same time, for the practical implementation of non-cascade NPP, each US state introduces the obligation to register business entities that sell goods or services to end consumers. For example, the state of Michigan requires individuals and legal entities selling tangible personal property - having a license to pay sales tax (salestaxlicence).
At the same time, entities selling goods to non-end consumers must declare this and receive the appropriate certificate.
What distinguishes Value Added Tax from Sales Tax? Here are the main differences, in our opinion:
Territoriality.
VAT: has the nature of a territorial tax, in particular, the sale of goods or the provision of services to a non-resident will take place without charging VAT.
NSP: most often has the nature of a “transaction tax” and will be charged to a non-resident.
Payment.
VAT: payment is made by all VAT payers from the manufacturer to the end consumer.
NSP: with non-cascading sales tax, the tax is paid by the retailer.
VAT:
NSP:
Accompanying documents.
VAT:
NSP:
Time of tax receipt to the budget.
VAT: goes to the budget in parts, even before it is sold to the end consumer.
NSP: goes to the budget only after sale to the end consumer.
Accompanying documents.
VAT: all parties must have invoices issued by suppliers to justify the VAT offset, the application of the “0” VAT rate or non-taxable VAT turnover.
NSP: with non-cascade sales and sales, sellers selling goods to non-end consumers must have certificates from their clients.
Artem Timoshenko, Partner, Unicase Law Firm
Aidar Masatbaev, Advisor, Unicase Law Firm
Sales tax is indirect tax ( tax for consumption), collected from buyers at the time of purchase of goods or services. Usually, sales tax calculated as a percentage share of the cost of the product (service) sold. At the same time, tax legislation may exempt some goods and services from taxation. Sales tax operates in many countries around the world.
Sales tax- English Sales tax is one of the types tax consumption, which is charged directly at the point of sale when purchasing certain goods and services.
Sales tax- paid with cost goods (work, services) sold at retail or wholesale for cash payment, namely: cost excisable goods, expensive furniture, radio equipment, clothing, gourmet food products, cars, furs, jewelry trade items, video products and CDs; services of travel companies related to trips outside the Russian Federation (with the exception of countries CIS), advertising services, three-, four- and five-star hotel services, passenger air transportation services in first and business class cabins and passenger rail transportation in luxury and first class carriages, as well as other non-essential goods and services by decision legislative (representative) bodies of the subjects RF.
The sales tax amount is usually set as follows: percent from the taxable sale price. Some goods and services may be exempt from this tax because sales tax laws usually contain a list of exceptions. Laws Tax administration regulations may require that sales tax be included in the price or added to the price at the point of sale.
In the majority countries sales taxes are collected by the seller from the buyer, and salesman transfers the received amount to the government tax office. Sales tax is usually charged at sale goods, but in many cases it is also charged when sale services.
Sales tax is charged only when goods or services are sold to the final consumer. To achieve this, buyer, which is not final acquirer usually required to provide to the seller“resale certificate” (English Secondary market Certificate), which confirms that you are purchasing a product for the purpose of reselling it. In this case, tax will be charged on each item that is not secured by such a certificate.
IN modern world There is a trend towards a transition from a regular sales tax to a more universal value added tax (VAT). Tax on Additional cost provide approximately 20% of tax revenues worldwide, and are used in more than 140 countries. However, the US is one of the few countries that has retained a regular sales tax.
Tax systems that use a sales tax often promote economic growth, savings, and investment. Economists from the Organization for Economic Co-operation and Development (OECD) studied the impact of various types of taxes on the economic growth of developed countries within the OECD and found that sales taxes are one of the least harmful taxes for economic growth.
Some economists believe that the sales tax is outdated in today's world because it imposes a greater tax burden on low-income individuals than on high-income individuals. However, this negative effect of the sales tax could be prevented, for example, by exempting certain essential goods such as food, clothing and medicine.
Sales for cash are equivalent to sales involving settlements using credit and other payment cards, bank checks, transfers from bank accounts on behalf of individuals. persons, as well as the transfer of goods (performance of work, provision of services) to the population in exchange for other goods (work, services). When determining the tax base, the cost of goods (work, services) includes tax on Additional cost and excise taxes for excisable goods. Rate N.s.p. set at up to 5% ( laws subjects RF the tax is required to be paid on the territory of the relevant constituent entities of the Russian Federation). The amount of tax is determined as a percentage of the product price corresponding to the tax rate, excluding sales tax, and is included by the taxpayer in the price of the product presented for payment to the buyer (customer). Amounts payments according to the tax are credited to the budgets of the constituent entities of the Russian Federation and local budgets (40 and 60%, respectively) and are directed to the social needs of low-income groups of the population.
The cost of bread and bakery trade items, milk and dairy products, vegetable oil, margarine, cereals, sugar, salt, potatoes, baby and diabetic food products is not subject to sales taxation; children's clothing and shoes, medicines, prosthetic and orthopedic trade items; housing and communal services, as well as services for the rental of state or municipal residential premises to the population, as well as the provision of housing in dormitories; buildings, structures, land plots and other objects related to real estate, and securities; services for the transportation of passengers by public transport of the municipality (except for taxis), as well as services for the transportation of passengers in suburban traffic by sea, river, rail and road transport; services provided by credit institutions, insurers, non-state pension funds, professional participants in the securities market, provided within the framework of their activity market subject to licensing, as well as services provided by the bar association, other goods (work, services) in accordance with federal law and laws of the constituent entities of the Russian Federation.
Sales tax was introduced on the territory of the Russian Federation twice. This first happened in 1991, when this tax was introduced by USSR legislation. The tax rate was set at 5 percent. However, already at the end of the same year, simultaneously with the collapse of the Union of Soviet Socialist Republics (), fundamental changes took place in Russian tax legislation. IN new system taxes and fees introduced by the law “On the Fundamentals taxation systems in Russia" from January 1, 1992, there was no sales tax.
The second time a sales tax was introduced in the Russian Federation was in 1998 as a regional tax. At the same time, it was established by law that each subject of the federation independently decides on the introduction of a tax on its territory, and also sets its rate within the maximum. Maximum bet was re-set at 5 percent. In addition, tax legislation established that with the introduction on the territory of the subject federations Sales taxes stop collecting most local taxes. There was also an extensive list of goods and services, the sale of which is not subject to sales tax.
In 1998 and 1999, sales tax was introduced in most regions of Russia. Most of the entities in which the tax was introduced set the rate at 5 percent (the maximum possible).
Since January 1, 2002, the procedure for collecting sales tax was regulated by Chapter 27 of the Tax Code. However, the basic tax conditions remained the same. Even at the time of the introduction of this chapter, it was stipulated that it would be in force for only two years. As of January 1, 2004, sales tax is not levied in the Russian Federation. However, after this, proposals were made to replace the sales tax with the value added tax.
Sales tax in USA (also known as purchase tax or state tax) is an indirect tax (English "Sales tax") levied by a seller or store on the buyer for the benefit of the state from which the buyer made the purchase. For remote purchases, such as online or by telephone, the state to which tax will be collected will be the one to which the purchase will be shipped.
Sales tax depends on the laws of each individual state and in some states reaches 10%. For the state of Maryland, where our company is based, it is 6%.
This tax is levied in cases where the seller or store has a physical presence in the buyer’s state. The physical presence of the selling company in the state means the presence of the company’s local office, warehouse, store, etc.
Thus, if a buyer located in USA, goes shopping in any physical store, then he will pay sales tax in any case. If the purchase is made remotely, via the Internet, then he will pay tax only if the store where he made the purchase has a physical presence in the buyer’s state.
If a buyer makes an online purchase from Amazon.com, which does all its sales online and does not have a physical presence in the buyer's state, the buyer will not pay any sales tax. If the buyer makes a purchase at the Macys.com online store, which has a local physical store in the buyer's state, then the buyer will be charged sales tax in addition to the purchase price. In this case, 7% is the sales tax of the state of Wyoming in which the prospective buyer lives.
How to avoid paying sales tax?
You will not be able to avoid paying tax at your specific store. Stores in the United States are required by law to charge customers this tax upon sale.
Alternatively, you can try to search for the product you want to buy in another store that does not charge sales tax, using services specially designed for this such as commercial units Search, PriceGrabber or BuyCheapr.
Sales tax is
Sales tax is
Sources
Wikipedia - The Free Encyclopedia, WikiPedia
budgetrf.ru - budget system of the Russian Federation
odinpost.com - goods from the USA
Investor Encyclopedia. 2013 .
See what “Sales Tax” is in other dictionaries:
Sales tax- since January 1, 2002, it is regulated by Chapter 27 of the Tax Code of the Russian Federation Sales Tax. Sales tax is a regional tax. The tax is indirect. The sales tax is established by the Tax Code of the Russian Federation and the laws of the constituent entities of the Russian Federation, and is put into effect in accordance with ... Vocabulary: accounting, taxes, business law
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Sales tax- This article or section describes the situation in relation to only one region. You can help Wikipedia by adding information for other countries and regions. Sales tax is an indirect tax (on ... Wikipedia
sales tax- a tax established as a percentage of the cost, price of goods and services sold. It is a type of excise tax... Dictionary of economic terms
SALES TAX- regional tax; is established by the Tax Code and the laws of the constituent entities of the Russian Federation, is put into effect in accordance with the Tax Code, laws of the constituent entities of the Russian Federation and is obligatory for payment on the territory of the corresponding constituent entity of the Russian Federation. When setting a tax, a subject of the Russian Federation determines the rate... ... Encyclopedia of Russian and international taxation