Revenue 95
in this tax category. Conversely, refunds of these taxes
when goods are exported are recorded as a reduction
of the taxes within this category. Th is item excludes
customs and other import duties (1151) and taxes on
exports (1152). When taxes are levied on a limited
range of goods rather than a wide range, they are in-
cluded in excises (1142). Borderline cases are resolved
on the basis of the predominant character of the tax.
Value-added taxes (11411).
5.58 Value-added taxes (VAT) (11411) are taxes
on goods or services collected in stages by enterprises
but that are ultimately charged in full to the fi nal pur-
chasers. Th is tax is described as a deductible tax be-
cause producers are not usually required to pay the
government the full amount of the tax they invoice to
their customers, as they are permitted to deduct the
amount of tax they have been invoiced on their own
purchases of goods or services intended for interme-
diate consumption or fi xed capital formation (i.e.,
only the net amount of VAT is recorded aft er deduct-
ing refunds—see paragraph 5.27). VAT is usually cal-
culated on the price of the good or service, including
any other tax on the product. VAT may also be pay-
able on imports of goods or services in addition to any
import duties or other taxes on the imports.
Sales taxes (11412)
5.59 Sales taxes (11412) are all general taxes levied
on sales at one stage only, whether at manufacturing
or production stages or on wholesale or retail trade.
Turnover and other general taxes on goods and services (11413)
5.60 Turnover and other general taxes on goods
and services (11413) are multistage cumulative taxes
and taxes where elements of consumption taxes are
combined with multistage taxes. Th ese taxes are lev-
ied each time a transaction takes place without deduc-
tion for taxes paid on inputs. Multistage taxes can be
combined with elements of value-added or sales taxes.
Taxes on fi nancial and capital transactions
(11414)^22
5.61 Taxes on fi nancial and capital transactions
(11414) are taxes levied on the change in ownership of
(^22) Th is item was classifi ed as 1134 in the GFSM 2001 (see footnote
21).
property, except those classifi ed as gift s, inheritance,
or estate transactions. Th ese taxes are recorded as taxes
on the services of the unit selling the asset. Included
are taxes on the purchase and sale of nonfi nancial or
fi nancial assets (including foreign exchange or secu-
rities), taxes on checks and other forms of payment,
and taxes levied on specifi c legal transactions, such as
the validation of contracts and the sale of immovable
property. Th is category does not include taxes on the
use of goods (part of 1145); taxes on capital gains (part
of 111); recurrent taxes on net wealth (1132); capital
levies (1135); fees paid to cover court charges or for
birth, marriage, or death certifi cates that are included
in administrative fees (1422); sales taxes (11412); or
general stamp taxes (part of 116).
Excises (1142)
5.62 Excises (1142) are taxes levied as a product-
specifi c unit tax on a predefi ned limited range of
goods. Excises are usually levied at diff erentiated
rates on nonessential or luxury goods, alcoholic bev-
erages, tobacco, and energy. Excises may be imposed
at any stage of production or distribution and are
usually assessed as a specifi c charge per unit based
on characteristics by reference to the value, weight,
strength, or quantity of the product. Included are spe-
cial taxes on individual products such as sugar, sugar
beets, matches, and chocolates; taxes levied at vary-
ing rates on a certain range of goods; and taxes lev-
ied on tobacco goods, alcoholic drinks, motor fuels,
and hydrocarbon oils. If a tax collected principally on
imported goods also applies, or would apply, under
the same law to comparable domestically produced
goods, then the revenue from this tax is classifi ed as
arising from excises rather than from import duties.
Th is principle applies even if there is no comparable
domestic production or no possibility of such pro-
duction. Taxes on the use of utilities such as water,
electricity, gas, and energy are regarded as excises
rather than taxes on specifi c services (1144). Excises
exclude those taxes that are levied as general taxes on
goods and services (1141); profi ts of fi scal monopolies
(1143); customs and other import duties (1151); or
taxes on exports (1152).Profi ts of fi scal monopolies (1143)
5.63 Profi ts of fi scal monopolies (1143) cover
that part of the profi ts of fi scal monopolies that is