Net all-phase sales tax with input tax deduction

The current value added tax system is based on the “sales tax” in the sales area; of which the sales tax is in the procurement area as Input tax deduct. The payment burden to be paid or the reimbursement remains. The terms value added tax and sales tax are used synonymously despite the difference.
The all-phase system points to the elevation of the value added tax at all economic and performance levels. “Net” is intended to indicate the assessment basis excluding sales tax. the Input tax deduction takes place immediately in spite of factual and temporal distortions of the service processes, provided that there is an entitlement to input tax deduction. Alternatives to this form of the VAT system consist in deduction of advance sales or in an additive taxation of the "added value" created in a service level or company.

Worldwide is the value added tax prevailing in the form of VAT. In Europe there is a uniform VAT framework, but with numerous special features, especially with the standard rates (between 15 % and 25 %), the reduction rates, the tax bases, exemptions and thresholds.

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