Goods and Services Tax Can Affect Small Businesses

Goods and Services Tax Can Affect Small geschftslebenesCredit kenary820/Shutterstock India recently rolled out a Goods and Services Tax (GST) for a one-nation, one-tax mentality. A GST is a value-added tax levied on most goods and services sold for domestic consumption. GST is paid by consumers, but that money then goes to the government from businesses.According to Clear Tax, France was the first country to implement a GST. Its purpose? To reduce tax evasion. It basically simplifies and lowers the cost of obtaining taxes. mora than 160 countries have followed suit, including Brazil, Canada, Germany, Malaysia, U.K. and Singapore.What is a GST?Currently, the United States does not have a GST, because it would not ensure autonomy for the states that have their own sales tax rates. But that doesnt mean small businesses in America dont need to know what it is and how it plays into their business. If youre doing business in other countries, it will certainly i mpact you. Read related story Best Tax Software for geschftlicher umgangEssentially, a GST is a tax on the value added created by a company, according to Gordon Styles, president and CEO of Star Rapid. GST is an indirect tax which creates one unified, common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer, Styles added.There are a couple different systems that are utilized by different countries. A single, unified GST system means that a single tax rate is applied throughout the country. There is also something called a dual GST structure, which involves tax collected by the federal or central government, which is then distributed among the states. In that font of system, there is sales tax, and then federal GST is applied on top of the sales tax.What should small businesses (SMBs) know?The GST means that once a product is sold, the business owner has to turn around and pay the government the tax dollars spent on the whole sale merchandise.Im a small business that manufactures a wearable product. The materials I buy at a wholesale price now have a tax on it, therefore, costing me mora money. I, in turn, have to charge more money for my products in reservierung to cover that tax, said Erin Robertson, founder and inventor of Ta-Ta Towels.GSTs are highly beneficial to small businesses, according to Styles. Typically, entrepreneurs who have just started a business have the additional burden of filing taxes before the deadline, and understanding tax credits and payment procedures entirely to run a compliant business.Styles added that with the traditional taxation structure, there is much room for mistakes, which a tax auditor would want to look further into. This might result in legal implications and hinder the success of the business. The GST helps to simplify this process for small businesses.Styles also noted that there are two types of GST in a business.There is input GST that is the GST you have been charged by your suppliers, and there is the output GST, or the GST you charge your customer. Under normal trading circumstances, a company will collect more GST than it has to pay out. The difference between the two is then handed over to the government, Styles told Business News Daily.How can the GST affect a small business?Since the GST is extra money that you need to pay, it could have a slight negative effect on profitability. There is the option to raise your prices to cover the amount of the tax, but with that, you risk losing your loyal customers.However, on the positive side, Entrepreneur India explains that the GST has done away with the confusing differentiations between goods and services. This will go a long way in reducing tax-evasion opportunities.Entrepreneur India says, GST requires every tax-paying entity to self-assess tax and file its returns on a monthly and an annual basis. Returns are to be filed electronically, which will reduce errors and lapses.Roberston do esnt seem to be completely sold on the GST, saying that it has the potential to be badeanstalt for businesses and consumers, as it costs both parties more money.Small businesses should be well informed, because this is something that could really hurt them. This is especially true for businesses in California, where it is already hard to profit, thanks to all of the state taxes, Robertson added.The difference between a GST for a small business and a large corporation is that large corporations can avoid paying many corporation taxes but struggle to avoid paying GST in countries that implement it, said Styles. This affects small business positively as it levels the playing field, so to speak, for smaller businesses that cannot afford expensive lawyer and accountants to hide their profits overseas or avoid taxes in Delaware.Advantages and disadvantagesStyles laid out the advantages and disadvantages of a GST for small business.AdvantagesIt simplifies the system to make the cost of bus iness easier.GST would raise money as it is a tax on consumption.You end up with a good audit trail. The matching of GST paid by suppliers and that claimed by companies further down the line makes avoidance more difficult.DisadvantagesA single rate of GST doesnt distinguish damaging activities from non-damaging activities. If you choose, as like India, to have a range of different rates of GST, you can tax bad activities (selling beef) with a higher GST, and zero rate the sale of good activities (selling fresh vegetables)GST is a tax on value-added items. Combined with an income tax, this means that the circular flow is taxed twice both income tax and GST, which is a bad thing.Complex and unaligned GST systems can be subject to fraud, for example, carousel fraud in the EU across borders. Jennifer Post Jennifer Post graduated from Rowan University in 2012 with a Bac helors Degree in Journalism. Having worked in the food industry, print and online journalism, and marketing, she is now a freelance contributor for Business News Daily and Business.com. When shes not working, you will find her exploring her current town of Cape May, NJ or binge watching Pretty Little Liars for the 700th time. Start Your Business Business Ideas Business Plans Startup Basics Startup Funding Franchising Success Stories Entrepreneurs Grow Your Business Sales Marketing Finances Your Team Technology Social Media Security Build Your Career Get the Job Get Ahead Office Life Work-Life Balance Home Office Lead Your Team Leadership Women in Business Managing Strategy Personal Growth Find A Solution HR Solutions Financial Solutions Marketing Solutions Security Solutions Retail Solutions SMB Solutions About Us Contact Us Partner with Us Copyright Policy Terms of Use Privacy Policy Do Not Sell My Personal Information Advertising Disclosure Sitemap 200 Fifth Avenue, Second FloorWaltham, MA 02451infobusinessnewsdaily.com Copyright document.writ e(new Date().getFullYear()) All Rights Reserved. Company About Us Contact Us Partner with Us Copyright Policy Terms of Use Privacy Policy Do Not Sell My Personal Information Advertising Disclosure Sitemap Network Business.com BuyerZone.com

3 Fresh Tips to Get a Knockout Resume Format for Internships

3 Fresh Tips to Get a Knockout Resume Format for InternshipsPosted on March 31, 2015October 23, 2018 by Millie Reinhardsen The traditional resume format for internships is a chronological format, primarily because this format highlights education and experience (work or volunteer) first.An internship resume should include the following categories (in order)Contact informationFull nameAddressPreferred phone numberEmail addressResume objective (a single sentence outlining what you can bring to the internship/do for the company)Education information (School name, location, date of expected graduation)Relevant courses and activitiesHonors and awardsRelevant experience (volunteer and/or work, with locations and dates)This format provides a good skeleton for your resume, but if not filled in with specifics about what makes you a distinctive and qualified candidate, it will simply read as bland to companies.To help distinguish yourself from the pool of competitors, here are 3 fresh tips to achieve a knockout resume format for internships1.Quantify your resumeWhenever possible, include a number to paint a clear picture of your experiences and achievements. For example, Division 1 Varsity Tennis kollektiv Captain for last several years in college vs. Division 1 Varsity Tennis Team Captain for last 2 years in college.If you participated in a volunteer group, movement, or campaign, for how long were you involved? If you had a leadership position, how many people were you managing?A number jumps out on a page and demands attention.2.KeywordsWhen recruiting, businesses rely on anApplicant Tracking System (ATS) to receive, filter, and file submitted resumes to determine which candidates are the most qualified. The ATS achieves this by combing through every resume forresume keywords. unterstellung areskills and qualifications mentioned in the original job or internship description that should be mentioned in the submitted resume.Depending on the size and nature of the company you wish to intern at, your resume may or may not be subjected to an ATS. Nevertheless, resume keywords are always a bonus with hiring managers as including themtailors your resume to the particular job.Seasoned job seekers know their resumes are likely to be scrutinized by an ATS. To prepare, they take advantage of online keyword tracking tools such as Jobscanto help customize their resumes and help them rank higher in the ATS.Aspiring interns may want to consider using such tools after all, many internships have the potential to turn into full-time positions.3.BrandingAs a beginning job seeker with minimal professional experience (hence the internship to gain some), another obstacle is to make yourself stand out from the crowd.The best way is to look for patterns in the activities and courses you have chosen. Your combination of interests and experience will be unique, and being able to convey thatwill help you stand apart.The same goes for any work and volunteer experience Which projects and companies did you pursue (small and local, or large and corporate)? Where do you excel (strong communication skills? Organizing large projects)?Companies want to give interns the opportunity to grow, achieve, and bring fresh new energy to their company. Showing what makes you different, and then demonstrating how your distinctiveness can benefit a company, is bound to have hiring managers picking up the phone.Facebook Commentswpdevar_comment_1 span,wpdevar_comment_1 iframewidth100% important