Definition: Purchaser’s price

Purchasing power parities

The amount paid by the purchaser in order to take delivery of a unit of a good or service at the time and place required by the purchaser. It excludes any VAT (Value added tax) (or similar deductible tax on products) which the purchaser can deduct from his own VAT liability in respect of VAT invoiced to his customers. It includes supplier’s retail and wholesale margins, separately invoiced transport and insurance charges and any VAT (or similar deductible tax on products) which the purchaser cannot deduct from his own VAT liability. In the case of equipment goods it will also include installation costs if applicable. Purchasers’ prices are the prices most relevant for decision-making by buyers.
Source:
Eurostat, Organization for Economic Cooperation and Development (OECD), "Eurostat-OECD Methodological Manual on Purchasing Power Parities", Publications Office of the European Union, Luxembourg, 2012
Created:
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