TAXES AND VAT IVONA RADANOVIĆ 2.E HISTORY OF TAXES The first known taxation system was in Ancient Egypt around 3000-2800 BC Most widespread form of taxation at the time were the corvee and tithe. The corvee was forced labour provided to the state by peasants that were to poor to pay other forms of taxation Tithe is one-tenth part of something paid as a compulsory tax to the government TYPES OF TAXES THROUGHT HISTORY • Tallage is a tax on feudal dependents • Scutage is lieu of military service • Tax farming is assigning responsibility for tax revenue collection to private citizens or groups
TAXES TAX is a compulsory contribution to state revenue, levied by the government on workers income and business profits, or added to the costs of some goods and services PERSONAL INCOME TAX • Personal income tax is a tax imposed on individuals or taxpayers that varies with taxable income • The tax rate in EU stands at 38.60%
CORPORATE INCOME TAX • Corporate income tax is an assessment levied by the government on the profits of a company • The tax rate in EU stands at 21.30% PROPERTY TAX • Property tax is an ad valorem tax on the value of the property , usually levied by the government • There are four types of property tax: land, improvements to land, personal property and intaglible property
VALUE ADDEED TAX Value added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain VAT is regressive tax that places an economic strain on lowerincome taxpayers VAT is: • a general tax- it applies to all commercial activities involving the production and distribution of goods and the provision services • a consumption tax- its ultimately born by the final customer and its not a charge on businesses • Charged as a percentage of price- tax burden is visible at each stage in production and distribution EU law only requires that standard VAT rate must be at least 15% and the reduced 5%