Search box

Definition: Purchases of goods and services purchased for resale

Structural business statistics

Purchases for resale are purchases of goods for resale to third parties without further processing. It also includes purchases of services by "invoicing" service companies, i.e. those whose turnover is composed not only of agency fees charged on a service transaction (as in the case of estate agents) but also the actual amount involved in the service transaction, e.g. transport purchases by travel agents. The value of goods and services which are sold to third parties on a commission basis are excluded since these goods are neither bought nor sold by the agent receiving the commission.

When services for resale are referred to here, the services concerned are the output from service activities, rights to use pre-determined services, or physical supports for services. Purchases of goods and services purchased for resale in the same condition as received are valued at the purchase price excluding deductible VAT and other deductible taxes linked directly to turnover. All other taxes and duties on the products are therefore not deducted from the valuation of the purchases of goods and services. <a href="">http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:1998:344:0049:0080:EN:PDF</a>
Source:
European Union, Commission Regulation (EC) No 2700/98 of 17 December 1998 concerning the definitions of characteristics for structural business statistics
Created:
Updated: