Turnover tax

A turnover tax is similar to a sales tax or a VAT, with the difference that it taxes intermediate and possibly capital goods. It is an indirect tax, typically on an ad valorem basis, applicable to a production process or stage. For example, when manufacturing activity is completed, a tax may be charged on some companies. Sales tax occurs when merchandise has been sold.

A different meaning of Turnover Tax:The turnover tax is a sales tax used in planned economies to fund the jurisdiction and control demand for some product. The central authority in a command economy leaves the supplier a profit deemed to be fair, and takes the rest as a turnover task (i.e., money turned over to the government.) If the cost of production exceeds the market price, a negative turnover tax (a subsidy) may be used.

See also

* Cascade tax


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Look at other dictionaries:

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  • turnover tax — noun Britain : a tax on total transactions or gross sales usually applicable to all sales of commodities by manufacturers, wholesalers, and retailers * * * turnover tax noun A tax paid every time goods change hands during manufacture and… …   Useful english dictionary

  • turnover tax — tax imposed on the business turnover of a factory …   English contemporary dictionary

  • turnover tax — A tax on the sales made by a business, i. e. on its turnover. See sales tax …   Big dictionary of business and management

  • turnover tax — / tɜ:nəυvə tæks/ noun same as sales tax …   Dictionary of banking and finance

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