Difference between revisions of "VAT"

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[[File:Taxes2.jpg|thumb|right|500px|List of taxes that can be found on [[Economy]] tab in [[My country]]. VAT is in the third column.]]
  
 
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|[[File:Icon law VAT & import taxes.png]]
|'''Value Added Tax''', or '''VAT''', is a tax set forth by the [[Country administration]] that increases the selling price of items at the [[marketplace]].<br />The minimum VAT percentage on market prices is '''1%''', the maximum one is '''25%'''.
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|'''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]].<br />The minimum VAT percentage on market prices is '''1%''', the maximum one is '''25%'''.
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| colspan=2 |Tax revenue is added to the country [[Treasury]].
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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.
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To calculate the clean earnings following formula is applied:<br> <center> '''(SALE PRICE) / (100 + VAT rate) * 100'''</center>
  
;Example: ''If a citizen decides to sell one unit of [[Food]] for {{Money|1.00}}, and the countries VAT for food is '''5%''', then he will earn just {{Money|0,952}} for that unit of [[Food]] (1.00/105*100).''
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;Example: ''If a citizen decides to sell one unit of [[Food]] for {{Money|1.00}}, and the VAT for food is '''5%''', then citizen will earn just {{Money|0,95}} for that one unit of Food '''(1.00/105*100)'''. <br> This also means that the VAT value is {{Money|0.05}} '''(1.00-0.95)'''''
  
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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. A good idea to avoid losing money is to calculate your real income once VAT is applied, before to place the offer.
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So be careful when you place an offer on the market.  
  
Tax rates can be viewed by clicking on the [[Economy]] on [[Country stats]].
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VAT rates can be viewed by clicking on the [[Economy]] tab on [[My country]].
  
Please note: '''VAT is not added to the price of raw materials.'''
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Please note: '''VAT is not added to the price of [[raw materials]].'''
  
 
==See also==
 
==See also==
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[[Category:Economy]]

Latest revision as of 16:20, 8 November 2020

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List of taxes that can be found on Economy tab in My country. VAT is in the third column.
Icon law VAT & import taxes.png 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:
(SALE PRICE) / (100 + VAT rate) * 100
Example
If a citizen decides to sell one unit of Food for Icon - Money.png 1.00 CC, and the VAT for food is 5%, then citizen will earn just Icon - Money.png 0,95 CC for that one unit of Food (1.00/105*100).
This also means that the VAT value is Icon - Money.png 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.

VAT rates can be viewed by clicking on the Economy tab on My country.

Please note: VAT is not added to the price of raw materials.

See also


Back.gif Back to Taxes page