Split payment provides the following benefits, it is a pillar of the economic neutrality of Sales tax vis-à-vis the circuits. Thus, no persistence is supported by the product whatever the circuit it takes to the final consumer, provided that this circuit is made up exclusively of Sales tax-subject:
- It allows the effective tax refund of exported products;
- It equalizes the tax burden of Sales tax on imported products;
- It reduces tax evasion by chaining to each other since collecting one represents a deduction for the other.
Sales tax is a territorial tax
This system differs:
- The cascade system where the tax is borne again at each stage of the circuit
- The payment system at the single stage of distribution which places the stages prior to distribution outside the scope of the tax.
Sales tax is a general consumption tax which applies to deliveries of goods made in country, to services used and to the assigned right or rented object exploited. The use of the sales tax calculator is important.
Export transactions are therefore exempt from sales Sales tax without depriving the exporter of the right to deduct the Sales tax incurred on purchases of goods and services linked to the export.
On the other hand, imports are liable to country Sales tax, in principle, and with some exceptions, according to the same rules as those applicable in domestic law.
For quayside transfers, carried out on a regular basis, before the goods are released through customs, Sales tax is only due by the purchaser who performs the customs clearance of the goods. Although rare, this procedure is mainly used in the field of capital goods.
Sales tax is an actual tax
As a consumption tax, Sales tax is levied on goods and services on the occasion of business, ie transactions.
The expert recalls that the technical classification of taxes distinguishes the real tax which is liquidated on a determined value without any consideration of the quality of the taxpayer (Sales tax) from the personal tax whose liquidation takes into account the personal situation of the taxpayer.
Sales tax is qualified as real tax in the sense that what is imposed is the transaction. It follows that in theory, taxation is determined by the nature of the transactions or products or by determination of the law independently of the personal situation of the taxable person or of his client and that it is due on transactions for expensive.
- The onerous character is understood as being with consideration, generally represented by a sum of money but the consideration can also be in kind (good or service received in return).
- Only actual receipts can be subject to Sales tax and no Sales tax can be due on fictitious receipts.
- Thus, with some exceptions, the theory of an abnormal act of management does not apply to the field of Sales tax.
