I from pakistan its an amazing tutorial that i have watched on TH-cam i have watched 10 videos before it but i can't understand the difference between them but after this i have completely understand the difference of sales tax and vat hats of yours efforts for making this tutorial ❤
I have an exchange in the EU that’s charging me a 7.5% VAT fee to withdraw my funds is this the way it works on an exchange? I told them US citizens don’t pay VAT fees but they wouldn’t release my funds until paid.
Sounds good in theory, since the dealer and end person are treated more similarly. IE strictly as consumers which in this simplified example what they are. Makes each hop be more honest in the true value they added to the product rather than inflated/self perceived value. Will keep digging on VAT as idea is new to me & can't even imagine how the switch over process would look like. Any EU countries recently switch/add VAT or had it since before modern/tech age? (From USA, Andrew Yang vid indirectly brought me here).
Only US uses Sales tax taxation. Most countries use VAT to trace the business income sources. VAT gives a very clear picture for govt to get an est of business revenue.
How do you calculate sales tax when selling on Amazon, as states have different taxation? How does the cx pay the tax needed? Does Amazon calculate it automatically?
Geat video. Now is VAT included in the ''sticker price you see in the stores'' for example a sports drink in the USA is $2 on the shelf but when you check out its a little more. I'm in South Korea is the VAT included in the ''sticker price'' or like the USA?
Is there some other sales tax than just the state sales tax? Highest sales tax is 7,5% in California, that can't be all can it? In my country VAT is 24%..
Sir just wanted to ask is that sales tax system specific to usa or to the entire world To give you more context of my doubt Had a taxation lecture today In which sales tax was included in each chain of distribution,and our class teacher pointed there is a cascading effect in sales tax For eg(given by teacher):- "A sells an item for rs 100 and prevalent tax is 10% Then A shall sell to B for Rs 110(AND A will pay rs 10 to the govt) B then shall sell to C say @100% profit I.e Rs 220 + tax (220*10%)= ₹242 (B shall pay ₹22 to the govt) And so on Sorry for my lengthy doubt,btw great videos 🙏 Love from India
Fine, but government will not getting same value of TAX & VAT in the end , bkz u will add extra TAX on every stage of sales without deducting purchasing TaX as per VAT so if u will calculate it u will find ur self missed this Idea 💡.. Thx u most welcome 👍
This is bs. The dealer and car manufacturer would both raise the price of their products to offset the taxes they have to pay because of course they would, why wouldn't they. This would result in the consumer paying more money for the product in the end than if it were just sales tax.
This is incredibly misleading. larger items such as cars are manufactured with thousands of parts and most of those manufacturers are paying that VAT. That is all tied to the cost of the vehicle. There is no way you can build the exact same car for equal or less under a VAT system. It is impossible. Manufacturers would sacrifice the quality and safety of their product just to lower the price enough for consumers to buy.
Thanks for this. Very helpful. Appreciate if you would talk about the standard procedure to estimating the amount of accrued expenses for cost of sales and admin expense items in the profit or loss accounts (as well as the accrual liability on the balance sheet). Thank you.
But what is the philosophical difference? If the money can be the same for both cases, why some countries choose VAT, but others sales tax? What is the idea behind that?
Greetings from Indonesia. Really like your content. I learn something new. Appreciate very much and hope you can give content about Withholding Tax. Thanks a lot.
hi i just want to say that why the blue stick guy looks so happy nothing is funny about taxes ... also take a look at the black stick guy he's just faking it😁
Search for “remote” roles. Learn new excel skills. Make a resume that’s error free and that stands out. If not much experience, be willing to work for a small cpa office even for free for a little while.
If I sell a service (digital marketing service )for $2500 in the US vs the UK - Should I sell it with added tax in USA & UK or any way around? can you explain? thanks.
I have a rather particular question So imagine this Country A with a VAT of 20% And country B where its 10% The manufacturer from A sells to a distributor from B a 100$ product. That said with the VAT, B distributor pays 120$ Lets say be sells the product for 200$ Plus VAT hes selling for 220$ right 20 to give to the state but but The deduction is also 20$ due to country A's larger VAT So from this import, country B technically gets nothing, right? Itd be even crazier if the B distributor sells it for less than 200 but even the 200 is a lowball In any case a country with high VAT can in that way get abused by companies where the VAT is much smaller, right? I couldnt google much info on this, im sure that alterations to the tax system exist because of this. Best regards from Croatia ✌
In international transaction the VAT rate used would be the rate of the country where the business that receives the goods / services is registered (in this case B - 10%). That is also the country where the VAT should be paid. Within EU the reverse-charge applies for almost all transactions in order to not force the seller to VAT register in all countries where he supplies goods or services. The reverse charge shifts the responsibility to record VAT transaction to the buyer. In practice the seller issues an invoice with 0% VAT and a "reverse-charge applies" note. The buyer will need to calculate the VAT based on country B's rate (10%) - 10$ and he will report to the state that for this transaction the 10$ VAT should be paid. At the same time he is able to reclaim the same 10$ as the VAT on his input and in effect he will pay no VAT here.
Your Video is really helpful. I have a confusion. Does Sales tax system is different in different countries? If, sales tax is single point then there is no cascading effect.But in Bangladesh, previously there was sales tax, and to remove cascading effect VAT is introduced.In text book of Bangladesh, it is showed sales tax is also charged every stage.Please clear it...😊
With VAT you can make money? Buy 1000 tax is 10% you pay 1100 and next you sell With 0.01 cent profit the tax is 110 however since you can deduct the payed tax from it you earned 10 dollars in non taxable money ( double jeopardy) you can't pay taxes twice for the same amount waw biden do this please
@@TheFinancialController lol , okay but what about a turnover tax , for example you have a coffee shop your turnover is 200.000 a year the tax is 10% in this case no deduction ( for you ) but 20.000 for the government. The silver lining for the government is no matter if the shop makes profit the tax is always paid. You can easily hide your " profits " but modern technology makes it nearly impossible to hide your turnover ( PayPal, electronic payments, smart registration etc) making fraud very very difficult since it doesn't matter what profit or loss you make the tax is always paid ( modern technology allows it to be done automatically ) Day turnover 500 dollars 50 is sent to government no paperwork needed. The government knows now that the turnover was 500 . I believe this is a better system
I’ve been offered a position for Jr. Tax Accountant, focused in sales and use tax( New Jersey). What’s your advice on long term growth? I have a Big 4 (4 month) tax internship experience and some Accounts Payable (3 month). How much should I ask for salary? what’s the difference between Tax Associate & Jr. Tax Accountant?
Hey the salary range should be $50 - $60K depending on company size. The title diff between these 2 is someone irrelevant, focus more on the job responsibilities and how they relate to you learning and growing you skills.
@@TheFinancialController 2400 offices, 93,000 employees, annual revenue close 6B (2019). So, based on that how much should I settle for? Industry: International Trade & Development Company: Public
Much talk in the USA about replacing the income, corporate, payroll and gift tax with a flat federal VAT on all goods and services. We don't have a VAT like other countries. It would have to be between 19% and 23%. The only way that could work and be progressive is implementing way more universal social programs protecting poor and middle class.
Thank you for this video, having only worked in Canada our sales tax is a VAT. Which I think is the easier method of the two for accounting purposes. No trying to figure out if the forms have been processed for each vendor/customer etc.
Happy teachers day from an Indian student. I wish to god u will be happy. Thanks for sharing concepts
That’s very thoughtful chirayu! 🙏
I from pakistan its an amazing tutorial that i have watched on TH-cam i have watched 10 videos before it but i can't understand the difference between them but after this i have completely understand the difference of sales tax and vat hats of yours efforts for making this tutorial ❤
Greetings from Bangalore, India, Excellent presentation.
Thanks Hari!
Very clear refresher! Thanks.
I extremely like the video, man. Very helpful and informative. Thank you very much. It is presented so well too. Great, positive work.
Thanks Raya!
U all I needed in my life. That's it. Thank you so much
I have an exchange in the EU that’s charging me a 7.5% VAT fee to withdraw my funds is this the way it works on an exchange? I told them US citizens don’t pay VAT fees but they wouldn’t release my funds until paid.
Very informative!! 👌🏽👌🏽
Glad it’s helpful
Sounds good in theory, since the dealer and end person are treated more similarly. IE strictly as consumers which in this simplified example what they are. Makes each hop be more honest in the true value they added to the product rather than inflated/self perceived value. Will keep digging on VAT as idea is new to me & can't even imagine how the switch over process would look like. Any EU countries recently switch/add VAT or had it since before modern/tech age? (From USA, Andrew Yang vid indirectly brought me here).
Hi, not sure, but will look into it
Only US uses Sales tax taxation. Most countries use VAT to trace the business income sources. VAT gives a very clear picture for govt to get an est of business revenue.
Thanks, it was very helpful.
How do you calculate sales tax when selling on Amazon, as states have different taxation? How does the cx pay the tax needed? Does Amazon calculate it automatically?
Amazon uses the taxes based on point of delivery.
Thank you very much for this video! Helped a lot!!
Thank you for learning from my video:)
Thanks a lot.That was an amazing explanation!
Thanks for watching!
Thanks Bill if possible can you put some light on intercompany process in details.
Ok
Geat video. Now is VAT included in the ''sticker price you see in the stores'' for example a sports drink in the USA is $2 on the shelf but when you check out its a little more. I'm in South Korea is the VAT included in the ''sticker price'' or like the USA?
Excellent explanation, thank you
Glad it’s helpful
Is there some other sales tax than just the state sales tax? Highest sales tax is 7,5% in California, that can't be all can it? In my country VAT is 24%..
Can you send/use a seller certificate if you are reselling the product as an add-on to a service subscription that is being provided to the customer?
Excellent video. Thank you.
Thank you for watching
Fantastic
Sir just wanted to ask is that sales tax system specific to usa or to the entire world
To give you more context of my doubt
Had a taxation lecture today
In which sales tax was included in each chain of distribution,and our class teacher pointed there is a cascading effect in sales tax
For eg(given by teacher):- "A sells an item for rs 100 and prevalent tax is 10%
Then A shall sell to B for Rs 110(AND A will pay rs 10 to the govt)
B then shall sell to C say @100% profit
I.e Rs 220 + tax (220*10%)= ₹242 (B shall pay ₹22 to the govt)
And so on
Sorry for my lengthy doubt,btw great videos 🙏
Love from India
To my knowledge, sales tax is specific to the US
Thank you so much
You're most welcome
Please make a video about the balance sheet equation 🔥
Ok will do
@@TheFinancialController Thanks for your great effort and for sharing your experience with us
Great work good sir
Thanks 🙏
Fine, but government will not getting same value of TAX & VAT in the end , bkz u will add extra TAX on every stage of sales without deducting purchasing TaX as per VAT so if u will calculate it u will find ur self missed this Idea 💡..
Thx u most welcome 👍
So sales tax is nothing to do with the UK? Only VAT?
Correct
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use code 30OFFCOURSE for 30% off
Sir can you guide me about different between CA and CAP after CAP.can I do audit
Basically.....
This is bs. The dealer and car manufacturer would both raise the price of their products to offset the taxes they have to pay because of course they would, why wouldn't they. This would result in the consumer paying more money for the product in the end than if it were just sales tax.
This is incredibly misleading. larger items such as cars are manufactured with thousands of parts and most of those manufacturers are paying that VAT. That is all tied to the cost of the vehicle. There is no way you can build the exact same car for equal or less under a VAT system. It is impossible. Manufacturers would sacrifice the quality and safety of their product just to lower the price enough for consumers to buy.
Sales taxes are much better, the products are much cheaper.
Thanks for this. Very helpful. Appreciate if you would talk about the standard procedure to estimating the amount of accrued expenses for cost of sales and admin expense items in the profit or loss accounts (as well as the accrual liability on the balance sheet). Thank you.
Ok will do!
Great video. Exactly what I was looking for
But what is the philosophical difference? If the money can be the same for both cases, why some countries choose VAT, but others sales tax? What is the idea behind that?
Thank you Bill! The presentation was superb and beneficial.
Nice! Thank you!
Good example great explanations sir .thank you so much sir.now I'm clearly understand vat ,sales tax sir.
It seems in VAT the gov gets 6,000 as opposed to 3,000 right? So the gov def. comes out on top with VAT.
So technically a usa citizen is paying less as he doesn't pay added value taxs on good's
This was amazing. Was looking for something like this since long..Thank you bill..😊
I think nexus and USE Tax is not applicable here in Indonesia. Yet, thanks a lot for your video. It's good to watch, it's good to hear. Warm regards
Good to know :)
Thank you very much! It's all clear now😊 Greetings from Azerbaijan! 🇦🇿
Welcome to the gang nana!
Very comprehensive overview - extremely helpful! Do you have a video about the Import/Export components of VAT?
Thanks! Will do in the future
Greetings from Indonesia. Really like your content.
I learn something new. Appreciate very much and hope you can give content about Withholding Tax. Thanks a lot.
Thank you! Ok will do :)
hi i just want to say that why the blue stick guy looks so happy nothing is funny about taxes ...
also take a look at the black stick guy he's just faking it😁
Thanks so much for the valuable content.
I have a question for you.
How can i work as accountant or junior financial analyst online?
Thanks in advance
Search for “remote” roles. Learn new excel skills. Make a resume that’s error free and that stands out. If not much experience, be willing to work for a small cpa office even for free for a little while.
@@TheFinancialController thanks 😊, but i hope to make Video about that.
Gomaa Ragab ok its a good vid idea. Thanks 😊
Thank you ❤❤
You're welcome 😊
Thanks! I'm learning a lot with you!!!
perfect video, thanks a lot.
Fantastic video
Thank you bill, Nice presentation. In future expecting more and more
Thanks for watching
If I sell a service (digital marketing service )for $2500 in the US vs the UK - Should I sell it with added tax in USA & UK or any way around? can you explain? thanks.
In the US it depends on each state whether digital marketing is taxable
Thank you for sharing this very useful information
Thanks 🙏
I have a rather particular question
So imagine this
Country A with a VAT of 20%
And country B where its 10%
The manufacturer from A sells to a distributor from B a 100$ product. That said with the VAT, B distributor pays 120$
Lets say be sells the product for 200$
Plus VAT hes selling for 220$ right
20 to give to the state but but
The deduction is also 20$ due to country A's larger VAT
So from this import, country B technically gets nothing, right?
Itd be even crazier if the B distributor sells it for less than 200 but even the 200 is a lowball
In any case a country with high VAT can in that way get abused by companies where the VAT is much smaller, right?
I couldnt google much info on this, im sure that alterations to the tax system exist because of this.
Best regards from Croatia ✌
This is why I am not a tax accountant :) yeah the cross border tax law can get quite complex
In international transaction the VAT rate used would be the rate of the country where the business that receives the goods / services is registered (in this case B - 10%). That is also the country where the VAT should be paid. Within EU the reverse-charge applies for almost all transactions in order to not force the seller to VAT register in all countries where he supplies goods or services. The reverse charge shifts the responsibility to record VAT transaction to the buyer. In practice the seller issues an invoice with 0% VAT and a "reverse-charge applies" note. The buyer will need to calculate the VAT based on country B's rate (10%) - 10$ and he will report to the state that for this transaction the 10$ VAT should be paid. At the same time he is able to reclaim the same 10$ as the VAT on his input and in effect he will pay no VAT here.
Your Video is really helpful. I have a confusion. Does Sales tax system is different in different countries? If, sales tax is single point then there is no cascading effect.But in Bangladesh, previously there was sales tax, and to remove cascading effect VAT is introduced.In text book of Bangladesh, it is showed sales tax is also charged every stage.Please clear it...😊
Apologies deeti I am not very familiar with Bangladesh tax system
@@TheFinancialController Thank you 😊
I am a simple man. I see numbers on the board, I like it.
Thanks 🙏
Thank you! Just what I was looking for.
Great!
With VAT you can make money?
Buy 1000 tax is 10% you pay 1100 and next you sell With 0.01 cent profit the tax is 110 however since you can deduct the payed tax from it you earned 10 dollars in non taxable money ( double jeopardy) you can't pay taxes twice for the same amount waw biden do this please
In this case you collect 110 but paid vendor 100. This means you pay the government 10 (the difference). So didn’t make money
@@TheFinancialController lol , okay but what about a turnover tax , for example you have a coffee shop your turnover is 200.000 a year the tax is 10% in this case no deduction ( for you ) but 20.000 for the government.
The silver lining for the government is no matter if the shop makes profit the tax is always paid. You can easily hide your " profits " but modern technology makes it nearly impossible to hide your turnover ( PayPal, electronic payments, smart registration etc) making fraud very very difficult since it doesn't matter what profit or loss you make the tax is always paid ( modern technology allows it to be done automatically )
Day turnover 500 dollars 50 is sent to government no paperwork needed. The government knows now that the turnover was 500 . I believe this is a better system
@@TheFinancialController im guessing she has 2 companies in europe with different tax cuts
I’ve been offered a position for Jr. Tax Accountant, focused in sales and use tax( New Jersey). What’s your advice on long term growth? I have a Big 4 (4 month) tax internship experience and some Accounts Payable (3 month).
How much should I ask for salary?
what’s the difference between Tax Associate & Jr. Tax Accountant?
Hey the salary range should be $50 - $60K depending on company size. The title diff between these 2 is someone irrelevant, focus more on the job responsibilities and how they relate to you learning and growing you skills.
@@TheFinancialController 2400 offices, 93,000 employees, annual revenue close 6B (2019). So, based on that how much should I settle for?
Industry: International Trade & Development
Company: Public
Should be closer to $60k. But I would say don’t make money the only factor. Focus more on what you will learn there
@@TheFinancialController Thank you for your guidance. I have accepted the offer and will start in two weeks. I really appreciate your help!
Doesn't a VAT collect more money than just a sales tax?
Vat rates are higher in the UK than Sales tax in the US so Yes
Much talk in the USA about replacing the income, corporate, payroll and gift tax with a flat federal VAT on all goods and services. We don't have a VAT like other countries. It would have to be between 19% and 23%. The only way that could work and be progressive is implementing way more universal social programs protecting poor and middle class.
Thank you for this video, having only worked in Canada our sales tax is a VAT. Which I think is the easier method of the two for accounting purposes. No trying to figure out if the forms have been processed for each vendor/customer etc.
I agree
Right. It's much easier to pay tax and deduct a tax per customer on each widget instead of just having a paper that exempts you. Lol
VAT is the dumbest system possible. So needlessly complicated. And it makes everything expensive while also stifling small businesses.
Plus you need to hire tax advisors to figure it out