Learn about the form of tax that varies state by state and country by country, but has the common element of being added to the purchase cost of a good or service.
- One of the most annoying taxes from a personal perspective…is sales tax, especially in places where the sales tax…is added at the point of sale.…So all of a sudden, your $99 purchase is now $106.92…in New York City, or in China it's bumped to $115.83.…In your country, it may go by a different name…like value-added tax or Goods and Services Tax.…Collectively, sales taxes are known as consumption taxes.…Now there are benefits to governments raising revenue…through sales tax.…
People have to eat and shop and buy services like cellphones…and every time you spend money, the government gets paid.…Consumption taxes, however,…tend to hit lower income people the hardest.…You may not notice that extra 8%,…but someone living paycheck to paycheck certainly does.…But what about a small business owner or manager?…Do these really make an impact on you…given it's your customers and not you paying the sales tax?…In short, yes.…You may not be paying the taxes, but you're 100% responsible…for collecting, reporting, and passing them on…
- Determine how business structure and location impact the taxes on your small business.
- Break down the different types of taxes.
- Identify ways to reduce taxable income.
- Recognize strategies to that are helpful in reducing the tax rate.
- Formulate a plan on how to best manage your small business taxes using a tax planning tool.