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From Wikipedia, the free encyclopedia

A turnover tax is similar to VAT, with the difference that it taxes intermediate and possibly capital goods. It is an indirect tax, typically on an ad valorem basis, applicable to a production process or stage. For example, when manufacturing activity is completed, a tax may be charged on some companies. Sales tax occurs when merchandise has been sold.

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By country

In South Africa, the turnover tax is a simple tax on the gross income of small businesses. Businesses that elect to pay the turnover tax are exempt from VAT. Turnover tax is at a very low rate compared to most taxes but is without any deductions.[1]

In the Republic of Ireland, turnover tax was introduced in 1963[2] and followed by wholesale tax in 1966.[3][4] Both were replaced in 1972 by VAT,[5] in preparation for Ireland's accession to the European Communities, which prohibited both taxes.[4][6]

See also


  1. ^ "Turnover Tax for Small Business". South African Revenue Service. Archived from the original on April 29, 2011. Retrieved April 14, 2011.
  2. ^ "Finance Act, 1963, Section 47". Irish Statute Book. Retrieved 17 November 2014.
  3. ^ "Finance (No. 2) Act, 1966, Section 2". Irish Statute Book. Retrieved 17 November 2014.
  4. ^ a b "Revenue Over the Years 1959 - 1967". Revenue Museum. Dublin: Revenue Commissioners. Retrieved 17 November 2014.
  5. ^ "Value-Added Tax Act, 1972". Irish Statute Book. Retrieved 15 February 2017.
  6. ^ "Value-Added Tax Bill, 1971 (Certified Money Bill): Second Stage". Seanad Éireann debates. Dublin: Oireachtas. 18 July 1972. Retrieved 17 November 2014.

This page was last edited on 24 March 2021, at 07:10
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