Of the three major types identified, the "consumption" version is most widely used, and is calculated almost exclusively using the "invoice", or "credit", method.
Of the three major types identified, the "consumption" version is most widely used, and is calculated almost exclusively using the "invoice", or "credit", method. First adopted on a large scale by France in 1954, it is now required to be implemented by members of the European Union. According to the "invoice" method of calculation, a seller of a good is required to pay the government the difference in the taxes the seller has collected and the taxes already paid on goods purchased. FTP, what is this government levy on the amount that a business firm adds to the price of a commodity during production and distribution of a good?
Of the three major types identified, the "consumption" version is most widely used, and is calculated almost exclusively using the "invoice", or "credit", method.
Value-added tax