What Tax types are available in Modeliks?

Modeliks offers the convenience of handling the three most common tax types: Sales Tax, Income Tax, and Value Added Tax (VAT).

Taxes can be puzzling, with various types and their own rules. Understanding these distinctions will help us unravel the complexities of taxation more effectively 💪

🗽 United States businesses primarily deal with Sales tax ✔️& have no VAT ❌

🌍 Europe businesses predominantly use VAT ✔️ & no Sales tax ❌

🐨 Australia & 🍁Canada, have a third form of Consumption tax: Goods and Services Tax (GST), which operates similarly to VAT ✔️

taxes

Income Tax (taxable income)

It's a tax that companies pay based on the profits they earn. This tax is a direct obligation of the company, unlike the sales tax, which is collected from consumers. Unlike sales tax, which is collected from consumers at the point of sale, income tax is a direct obligation of the company itself.

🔎 It's an important source of revenue for many governments and is based on the company's net income or profit.

Sales Tax

It's a tax added to the Cost of Goods and services when they're sold. The rate is usually a percent of the sale price. Businesses collect this tax from customers and then pass it on to the government. The specific rate can vary depending on the type of product or service and the rules set by the government in that area.

Value Added Tax (VAT)

It's a tax added to goods and services at each step of the supply chain. It's based on the value added at each stage. VAT rates vary by country. The amount of VAT the user pays is based on the cost of the product minus any costs of materials in the product that have already been taxed at a previous stage.