|Value Added Tax, or VAT, is a tax set forth by the Country administration that decreases the earnings, cutting out the tax from the item price on the marketplace.|
The minimum VAT percentage on market prices is 1%, the maximum one is 25%.
Tax is calculated from the sale price of a product. 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 decides to sell one unit of Food for 1.00 CC, and the VAT for food is 5%, then citizen will earn just 0,95 CC for that one unit of Food (1.00/105*100).
This also means that the VAT value is 0.05 CC (1.00-0.95)
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.
So be careful when you place an offer on the market.
Please note: VAT is not added to the price of raw materials.