Tax

===Goods and services===
====Value added====
{{Main|Value added tax}}
A value-added tax (VAT), also known as Goods and Services Tax (GST), Single Business Tax, or Turnover Tax in some countries, applies the equivalent of a sales tax to every operation that creates value. To give an example, sheet steel is imported by a machine manufacturer. That manufacturer will pay the VAT on the purchase price, remitting that amount to the government. The manufacturer will then transform the steel into a machine, selling the machine for a higher price to a wholesale distributor. The manufacturer will collect the VAT on the higher price but will remit to the government only the excess related to the "value-added" (the price over the cost of the sheet steel). The wholesale distributor will then continue the process, charging the retail distributor the VAT on the entire price to the retailer, but remitting only the amount related to the distribution mark-up to the government. The last VAT amount is paid by the eventual retail customer who cannot recover any of the previously paid VAT. For a VAT and sales tax of identical rates, the total tax paid is the same, but it is paid at differing points in the process.

VAT is usually administrated by requiring the company to complete a VAT return, giving details of VAT it has been charged (referred to as input tax) and VAT it has charged to others (referred to as output tax). The difference between output tax and input tax is payable to the Local Tax Authority.

Many tax authorities have introduced automated VAT which has increased [[accountability]] and [[auditability]], by utilizing computer systems, thereby also enabling anti-cybercrime offices as well. {{citation needed|date=September 2016}}

====Sales====
{{Main|Sales tax}}
Sales taxes are levied when a commodity is sold to its final consumer. Retail organizations contend that such taxes discourage retail sales. The question of whether they are generally progressive or regressive is a subject of much current debate. People with higher incomes spend a lower proportion of them, so a flat-rate sales tax will tend to be regressive. It is therefore common to exempt food, utilities, and other necessities from sales taxes, since poor people spend a higher proportion of their incomes on these commodities, so such exemptions make the tax more progressive. This is the classic "You pay for what you spend" tax, as only those who spend money on non-exempt (i.e. luxury) items pay the tax.

A small number of U.S. states rely entirely on sales taxes for state revenue, as those states do not levy a state income tax. Such states tend to have a moderate to a large amount of tourism or inter-state travel that occurs within their borders, allowing the state to benefit from taxes from people the state would otherwise not tax. In this way, the state is able to reduce the tax burden on its citizens. The U.S. states that do not levy a state income tax are Alaska, Tennessee, Florida, Nevada, South Dakota, Texas,<ref>Although Texas has no individual income tax, the state does impose a [[franchise tax]]—soon to be replaced by a margin tax—on business activity that, while not denominated as an income tax, is in substance a kind of income tax.</ref> Washington state, and Wyoming. Additionally, New Hampshire and Tennessee levy state income taxes only on [[Dividend tax|dividends]] and interest income. Of the above states, only Alaska and New Hampshire do not levy a state sales tax. Additional information can be obtained at the [http://www.taxadmin.org/ Federation of Tax Administrators] website.

In the United States, there is a growing movement<ref>{{cite news |url=http://www.economist.com/business/displaystory.cfm?story_id=13110436 |title=Economist.com |work=Economist|date=12 February 2009 |access-date=27 March 2009}}</ref> for the replacement of all federal payroll and income taxes (both corporate and personal) with a national retail sales tax and monthly tax rebate to households of citizens and legal resident aliens. The tax proposal is named [[FairTax]]. In Canada, the federal sales tax is called the Goods and Services Tax (GST) and now stands at 5%. The provinces of British Columbia, Saskatchewan, Manitoba, and Prince Edward Island also have a provincial sales tax [PST]. The provinces of Nova Scotia, New Brunswick, Newfoundland & Labrador, and Ontario have harmonized their provincial sales taxes with the GST—Harmonized Sales Tax [HST], and thus is a full VAT. The province of Quebec collects the Quebec Sales Tax [QST] which is based on the GST with certain differences. Most businesses can claim back the GST, HST, and QST they pay, and so effectively it is the final consumer who pays the tax.

====Excises====
{{Main|Excise}}
An excise duty is an [[indirect tax]] imposed upon goods during the process of their manufacture, production or distribution, and is usually proportionate to their quantity or value. Excise duties were first introduced into England in the year 1643, as part of a scheme of revenue and taxation devised by parliamentarian [[John Pym]] and approved by the [[Long Parliament]]. These duties consisted of charges on beer, ale, cider, cherry wine, and tobacco, to which list were afterward added paper, soap, candles, malt, hops, and sweets. The basic principle of excise duties was that they were taxes on the production, manufacture, or distribution of articles which could not be taxed through the [[customs house]], and revenue derived from that source is called excise revenue proper. The fundamental conception of the term is that of a tax on articles produced or manufactured in a country. In the taxation of such articles of luxury as spirits, beer, tobacco, and cigars, it has been the practice to place a certain duty on the importation of these articles (a [[tariff|customs duty]]).<ref name=Quick>{{cite book |last1=Quick |first1=John |last2=Garran |first2=Robert |title=The Annotated Constitution of the Australian Commonwealth |date=1 January 1901 |publisher=Angus & Robertson |location=Australia |page=837 |url=https://books.google.com/books?id=VR-CAAAAIAAJ }}</ref>

Excises (or exemptions from them) are also used to modify consumption patterns of a certain area ([[Social engineering (political science)|social engineering]]). For example, a high excise is used to discourage [[alcoholic beverage|alcohol]] consumption, relative to other goods. This may be combined with [[Hypothecated tax|hypothecation]] if the proceeds are then used to pay for the costs of treating illness caused by [[alcohol use disorder]]. Similar taxes may exist on [[tobacco]], [[pornography]], [[Cannabis (drug)|marijuana]] etc., and they may be collectively referred to as "[[sin tax]]es". A [[carbon tax]] is a tax on the consumption of carbon-based non-renewable fuels, such as petrol, diesel-fuel, jet fuels, and natural gas. The object is to reduce the release of carbon into the atmosphere. In the United Kingdom, [[vehicle excise duty]] is an annual tax on vehicle ownership.