Can anyone notify me the aim of VAT(value added tax) surrounded by the simplest of words next to an illustrate example?
and also the difference between VAT and sales tariffAnswers: A sales rates is levied on the final retail customer. Nobody else contained by the production or supply chain is involved surrounded by the collection and rendering of the tax.
VAT is levy at each step along the production and supply fasten, with a credit rewarded for the VAT already paid for the previous step.
For example, a furniture entrepreneur buys wood, hardware, finishing materials, etc. for the manufacture of furniture. He pays VAT on adjectives of these items. When he sells the furniture to a distributor, he collects VAT from the distributor. When he files his VAT return, he deduct the VAT he paid on the fresh materials from what he collected and pays the difference.
The distributor then sell the furniture to a retailer and collects VAT from the retailer. When he prepares his VAT return, he deducts that VAT that he remunerated to the manufacturer from what he collected from the retailer and pays the difference.
The retailer consequently sells it to the consumer and collects VAT from the consumer. When he prepares his VAT return, he deduct that VAT that he paid to the distributor from what he collected from the consumer and pays the difference.
While it sounds similar, in attendance are key differences. Most in particular at the retail end is that VAT is reflect on the "shelf price" while sales taxes are not. This normally leads to confusion next to foreign visitors to the US who expect to pay cheque the shelf price on an item and are blind-sided by the sales taxes added on at checkout.
Also, since VAT is collected at respectively stage along the way, the sundry handlers foot VAT on any "shrinkage" along the way. Goods stolen, destabilized, or destroyed along the way are VAT salaried, unlike with a sale tax where on earth the tax is collected ONLY if the stuff make it to the retail consumer.
Needless to read aloud, the preparation of VAT returns is considerably more complex than sales duty returns since you have to details for VAT in and out as in good health as returns and allowances at both ends.
Finally, while not explicitly a feature of VAT per se, VAT is virtually other levied at the national height while sales taxes are levy at the state and local level.
When do you have to pay Federal Taxes if you are on Social security.?
Answers: You must file by April 15th unless you request an extension for filing. The social security aspect of this makes no difference. There are no different filing dates based on where we get our income.
If you mean you want to know whether you have to pay any federal taxes or not, check here:
http://www.irs.gov/taxtopics/tc423.html
If by "when" you mean "what date", it's 15 April.
Everyone has to file their income tax return by April 15th.
Good luck.
If Social Secuity is your ONLY source of income it's generally not taxable. Therefore there is no need to pay Federal taxes.
If you have other income then some of your Social Security may be taxable. Take 1/2 of your Social Security benefits and add it to all of your other income. If the total exceeds $25,000 if your filing status is Single, Head of Household, or Qualifying Widow(er) or $32,000 if your filing status is $32,000 if your filing status is Married Filing Jointly or $0 if your filing status is Married Filing Separately, then up to 85% of your Social Security benefits may be taxable. (Yes, this does mean that your SS benefits are always taxable if your filing status is MFS!)
If you have taxable income that exceeds the filing requirement amount for your filing status you're required to file a tax return and pay any tax due by April 15th.
If your sole income is social security, you pay no federal income tax on it..
If you have other sources of income, up to 80% of your soc sec can be subject to taxes..
Check IRS publication 17 to see if your income level warrants filing your income tax and subject to taxes..
Medical Tax write-offs (mileage calculation)?
Anyone with accounting or charge preperation experience, please help! I hold proof for all of my medical expenses for former times year, but I would like to know how to write bad vehicle expenses such as mileage on my car. I thought it could be written bad as some sort of amount per mile (example: $0.15 per mile), but I can't find what the actual amount allowed is. Anyone with knowhow on this, please help.Answers: According to an IRS press release, emergence on Jan. 1, 2007, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
48.5 cents per mile for business miles driven;
20 cents per mile driven for medical or moving purposes; and
14 cents per mile driven within service to a charitable organization.
Found smoothly enough by going to www.irs.gov and entering "mileage" contained by their search box:
http://www.irs.gov/newsroom/article/0,,i...
Medical mileage estimate is 20 cents a mile for 2007.