Price policy in tax law

the Pricing policy is a marketing tool for a company. It includes all pricing and Price enforcement on the market. Tax effects occur both with the supplier and with the buyer. On the supplier side, it is relatively easy to consider taxes in the price for cost taxes as well as transport and consumption taxes.
The inclusion of income taxes and the value added tax is less clearly possible. The transferability is controversial and depends on the respective market situation. In addition to the direct tax burden, which must be achieved on the market at least in the long term through prices, there are also tax administration costs. Allowances and exemption limits act as price policy limits and are to be regarded as tax concessions up to their respective amount.

Signal effects can occur in the event of tax increases. Even when an increase in taxes is announced, there is still an increasing demand for services at the favorable tax rate. Changes in the price-sales function due to taxation must therefore be taken into account in pricing policy.

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