Goods and Services Tax

The Goods and Services Tax ( common abbreviation: GST ) is a tax comparable to VAT, which is levied in different English-speaking countries on goods sold and services rendered.

Australia

In Australia, the GST was introduced with the Goods and Services Tax Act 1999 on 1 July 2000. However, there was previously a commodity tax, Wholesale Sales Tax ( WST) ( wholesale sales tax ) was called and was introduced in 1930. During this time, the economy was dominated by the production of goods and services were not covered by the tax. Were taxed all produced or imported goods. Over the years, then, the Australian company had more changes in direction in the provision of services, which was then also taxed with the introduction of the GST. The tax rate was set at 10% for goods and services and has not changed since.

Exempt from GST can service in health, in education, in childcare and fresh unprocessed foods.

Business to A $ 75,000 in sales per year are not required to GST paid to the Australian Tax Office, as well as non-profit organizations, if they do not exceed an annual revenue of $ 150,000 A.

Canada

The GST held in Canada on January 1 of 1991, catchment and thus replaced the Manufacturers' Sales Tax (MST ) from. The MST was 13.5 % and was payable on all goods produced, on which were exported. The criticism of it was great and it was expected that Canadian firms had considerably recorded export drawbacks.

However, with the introduction of the GST, the tax system was not simpler. The GST, which was fixed at 7 %, with some exceptions, all taxed goods, services and financial services, where the revenues of the exchequer were attributed. In addition, where the individual provinces of the country, a Provincial Sales Tax (PST ), which was 8%, was allocated to the cash desk of the respective province, but could have different exceptions. This led to the service or product, whichever was taxed differently where purchased and they still had to pay attention to where it was purchased and where sold.

With effect from 1 January 2008, then joined the three provinces of Nova Scotia, New Brunswick and Newfoundland and Labrador together in terms of GST / PST and unified the tax system with the merger of GST and PST to the Harmonized Sales Tax (HST). At the same time the GST was reduced by the Central Government from 6% to 5%, so that consumers now only has to pay a flat tax of 13%, which is now called in the respective provinces HST. The provincial government of Ontario has followed the example of the three other provinces and the HST has also been introduced on 1 July 2010.

Company up to an annual income of C $ 30,000, it is free to decide whether they want to register for the GST / PST / HST and this pay it to the Canada Revenue Agency.

In the French- speaking part of Canada, the GST tax is called sur les produits et services (TPS).

New Zealand

In New Zealand the GST was introduced with the Goods and Services Tax Act 1985 by the then Labour government of David Lange for the first time in 1986. The 10 % tax, which was raised from 1 October of the year on all goods and services, has been described by critics as a regressive tax and the Politics of Finance Roger Douglas, who get the dire financial situation of the country in order to handle wanted, entitled Rogernomics.

On 1 July 1989, the GST was raised to 12.5 % and increased again on 1 October 2010 to current 15%. It was the first, however, increase in the assessment cleaved if the control had a positive effect by the time

As an entrepreneur, one is from a turnover of NZ $ 60,000 per year committed the GST to the Inland Revenue Department dissipate.

Singapore

The GST was introduced in Singapore on 1 April 1994, the VAT system of UK and the GST system should have stood godfather of New Zealand. The Inland Revenue Authority of Singapore ( IRAS ) drives a tax which is levied on all imports, goods and services produced.

With the introduction of the tax, the tax rate was initially set at 3% and stabilized at that time the finances of Singapore with 1.6 billion Billion S $. In the years 2003 and 2004, the tax rate was raised to 4% and 5% and fixed last on 1 July 2007 to 7%.

Hong Kong

In a press statement issued on 12 September 2006, the Chief Executive of the Financial Services and Treasury Bureau of Hong Kong, Donald Tsang, announced the introduction of a Goods and Services Tax for Hong Kong, citing the challenges of an externally oriented economy, a rapidly aging society and the fact that about 60 % of public spending on education, social security, health and medical care is given.

However, the reason for an introduction of the GST seems more likely to lie in the fact that only about 37 % of workers pay taxes on income and only a few companies cover 60 % of the total GST tax revenues. This makes the budget of the former crown colony vulnerable in terms of economic ups and downs. A tax on goods and services would be the budget of Hong Kong bring more stability here.

A 5 percent GST, as it is in the discussion, Hong Kong would give 3 to 4 billion U.S. dollars per year in revenue. The period for introducing the tax was estimated by the Financial Secretary of the FSTB to up to three years, but not yet introduced until April 2010.

Malaysia

Malaysia had planned a Goods and Services Tax introduced in 2011, however, the law has not yet passed through the second and third reading in Parliament. Thus, the introduction of a GST, according to Finance Minister Ahmad Husni Hanadzlah will probably be delayed until after 2011 [ deprecated].

India

India also had the Goods and Services Tax decided to introduce and thus abolish the UK VAT system. A very detailed report was submitted on 15 December 2009 to, the different GST- systems and describes the introduction of the tax. To keep the individual states in India 's financial autonomy, it was suggested in the report to introduce a CGST and SGST, CGST for the central government ("C" for Central) and SGST for each state ("S" for State).

The introduction of the tax was scheduled for 1 April 2010, but failed so far to the differences between individual states and the central government. Well an introduction on 1 October 2010, was targeted. The tax is intended, as is planned, 5nbsp; % for the CGST and 7nbsp; % for SGST amount, so that taken together the GST in India 12nbsp; would be%.