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No.. sales tax (GST in Australia) is passed on to the consumers and the companys do not pay any of this so they pay very little tax on Their profits Most invoi
by basicplus2 7y ago
No.. sales tax (GST in Australia) is passed on to the consumers and the companys do not pay any of this so they pay very little tax on Their profits
Most invoices even point this out by putting their total price adding on the GST to the invoice for a total
- joshuamorton 7y ago> is passed on to the consumers and the companys do not pay any of this This is semantic. The money a company has to pay tax on profit comes from consumers. If that tax goes up, so will consumer prices (depending on price elasticity obviously). All taxes are eventually passed on to the consumers.
- basicplus2 7y agono its not.. the Australian Gov even went to great lengths to show how businesses would not bear the cost of GST in the days of implementing the legislation! All goods and services cost more in Australia by 10% by virtue of the GST.. It is aconsumption tax.. the consumer pays it. It is not a prodction tax I suggest you talk to your accountant and have it explained in detail.
- joshuamorton 7y agoIf the cost of production increases, someone has to pay that cost. That someone is the consumer. All costs are (eventually) borne by the consumer because that's how economies work. You're talking about accounting, I'm talking about macroeconomics.
- deleted 7y ago[deleted]