Term Paper on VAT
VAT or value added tax is the tax or the definite amount of money which is taken into the state budget from the company for every product it manufactures. The amount of the tax depends on the type of the product and the quantity of the stages of its production, so company pays for the use of natural and human resources and the use of other services. At first the company pays into the national budget the tax, a certain percent from the cost of production and then the company wants to take the money back setting higher price for the product at a store. The consumer pays not only for the actual price of the product, but also the extra sum of money or percent called VAT. It is natural, that the company does not want to lose money, so the price of the product is always much higher than the actual cost of production; otherwise the company does not have profit and the business bankrupts.
Value added tax is the most important kind of tax for the budget of the country, because about 30% of taxes are received in this way. There are special products which do not have the indicator of VAT, for example, medicines, medical services, the repair of the building belonging to the sphere of healthcare and education, etc. Then, if the product is imported into the country, the indicator of VAT is set by the host country or the vendor. In spite of numerous advantages, there are many negative sides of VAT, because in some countries this procedure is not enough clear and gives space for corruption and financial crimes.
The issue on VAT can be useful for the research, because student is able to understand the principle of taxing of the production of all kinds and evaluate the importance of VAT for the national and global economy. The student is asked to dwell on the explanation of the term and discuss the structure of VAT, the components of this taxation system, the percentage of the added tax according to the type of production, etc. Moreover, one can dwell on the reasons of the creation of VAT and observe the indicator of VAT in different countries and its effectiveness for the state economy.
The student who is asked to prepare a quality term paper is supposed to learn about the norms and principles of writing and he can obtain this knowledge from a free example term paper on VAT written by the professional writer. The young person is able to succeed in writing if she learns about the structure and format of the assignment in a free sample term paper on VAT composed by an expert online.