What’s Output Tax and Why Should I Care? 🤔
Alright folks, gather around because we’re about to enter the slightly dry, yet oddly exciting world of Output Tax. Sounds fancy, huh? But don’t worry, we’ll add some zest to make sure you aren’t snoring by the end of it.
The Basics 📚
Output Tax is like the cherry on top of your taxation sundae. It’s the value-added tax (VAT) charged on the sale of goods or services by a business. Imagine you’re a baker. Every time you sell a cupcake, a little VAT sticker finds its way onto that cupcake. This VAT is collected from customers and then sent to Mr. Government!
Formula: Output Tax = Taxable Sales x VAT Rate
pie title Output Tax Fun-Diagram
