|Import tax is a tax set forth by the Country administration that decreases the earnings, cutting out the tax from the item price on the marketplace if the seller doesn't have the citizenship of the country where that market is.|
Tax is calculated from the sale price of a product by combining the items' import and VAT tax of a country where the item is to be sold. However, the easiest is to calculate how much would be the clean earnings and then the difference between the sale price and earning price is the actual import tax value.To calculate the clean earnings following formula is applied:
- If a citizen with Spanish citizenship decides to sell one unit of Food at the marketplace in France for 1.00 CC, and France's import tax for food is 50%, and France VAT for food is 5%, then the earning for the seller will be only 0.64 CC (1.00/155 * 100).
This also means that the import tax value is 0.36 CC (1.00-0.64)
However, to simplify the process for citizens, tax value is calculated automatically and can be seen when a product is put on the marketplace. Tax revenue is added to the Treasury of the country.
Import tax makes the export activity almost always less profitable than placing offers on the local market. Unless a citizen finds a foreign products market where the sum of that market VAT and import tax is less than the VAT value of citizen's citizenship country (local market). However, foreign raw materials market is always more expensive than the local raw materials market.