Definition: Indirect taxes

Structural business statistics

For the purposes of structural business statistics, indirect taxes can be separated into three groups.
- The first comprises VAT and other deductible taxes directly linked to turnover which are excluded from turnover. These taxes are collected in stages by the enterprise and fully borne by the final purchaser.
- The second group concerns all other taxes and duties linked to products which are either 1) linked to turnover and not deductible or 2) taxes on products not linked to turnover. Included here are taxes and duties on imports and taxes on the production, export, sale, transfer, leasing or delivery of goods and services or as a result of their use for own consumption or own capital formation.
- The third group concerns taxes and duties linked to production. These are compulsory, unrequited payments, in cash or in kind which are levied by general government, or by the Institutions of the European Union, in respect of the production and importation of goods and services, the employment of labour, the ownership or use of land, buildings or other assets used in production irrespective of the quantity or the value of goods and services produced or sold.

For the purposes of national accounts, taxes on production and imports can be separated into five groups, the first and last of which are essentially then same as the first and third groups used in business statistics.
- value added type taxes
- import duties
- taxes on imports excluding VAT and import duties
- taxes on products except VAT and import taxes
- other taxes on production.
Extract from the definitions of SBS Regulation variables (12 11 0) and Eurostat, "European System of Accounts - ESA 1995", Office for Official Publications of the European Communities, Luxembourg, 1996

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