Appendix 1 The concept structure of consumption taxes

THE CONCEPT STRUCTURE OF CONSUMPTION TAXES

Chapter 1
Introduction to
CONSUMPTION
Consumption tax

Domestic consumption - TAXABLE Foreign consumption

(Export)
EFFECTIVELY NOT

From abroad From domestic sellers

TAX (Importatio (Sales or Receipts)
BASIS
EXEMPT Chapter 2 exempt
Exempt Exempt sales import
CONSUMPT Chapter 4 exempt
importation

VAT ON Services specifically

IMPORTATION subject to % tax Chapter 5
Percentage
Below VAT threshold tax
TAXABLE (3% general
EXEMP
CONSUMPT VATABL T Chapter 6
ION E Above VAT threshold 10 Value
Chapter 2 (12% value added 0-RATED added tax
VAT on
importation
VAT Chapter 3
BUSINESS TAX Introduction to Business
tax