5111 Value-added taxes—general consumption taxes charged on value-added are classified in this subheading, irrespective of the method of deduction and the stages at which the taxes are levied. In practice, all OECD countries with value-added taxes normally allow immediate deduction of taxes on purchases by all but the final consumer and impose tax at all stages. 5112 Sales taxes—general taxes levied at one stage only, whether at manufacturing or production, wholesale or retail stage are classified here. 5113 Other general taxes on goods and services—multi-stage cumulative taxes (also known as “cascade taxes”) where tax is levied each time a transaction takes place without deduction for tax paid on inputs, and also those general consumption taxes where elements of value-added, sales or cascade taxes are combined. 5120 Taxes on specific goods and services—excises, profits generated and transferred from fiscal monopolies, and customs and imports duties as well as taxes on exports, foreign exchange transactions, investment goods and betting stakes and special taxes on services, which do not form part of a general tax of 5110, are included in this category. Social service contributions (category 2000) In contrast to Australia, many OECD countries have significant social security contributions (category 2000). For example, table D in OECD (2014, p.31) presents tax revenue, as a share of GDP, across sub-sectors of general government for each OECD country; social security contributions are included as a separate sub-sector. OECD (2014, see paragraphs 7-8 on p.319) notes that compulsory social security contributions paid to general government, are treated in category 2000 as tax revenues. Being compulsory payments to general government they clearly resemble taxes. They may, however, differ from other taxes in that the receipt of social security benefits depends, in most countries, upon appropriate contributions having been made, although the size of the benefits is not necessarily related to the amount of the contributions. Better comparability between countries is obtained by treating social security contributions as taxes, but they are listed under a separate heading so that they can be distinguished in any analysis. Social security contributions which are either voluntary or not payable to general government are not treated as taxes, though in some countries, as indicated in the country footnotes, there are difficulties in eliminating voluntary contributions and certain compulsory payments to the private sector.
5111 Value-added taxes—general consumption taxes charged on value-added are classified in this subheading, irrespective of the method of deduction and the stages at which the taxes are levied. In practice, all OECD countries with value-added taxes normally allow immediate deduction of taxes on purchases by all but the final consumer and impose tax at all stages. 5112 Sales taxes—general taxes levied at one stage only, whether at manufacturing or production, wholesale or retail stage are classified here. 5113 Other general taxes on goods and services—multi-stage cumulative taxes (also known as “cascade taxes”) where tax is levied each time a transaction takes place without deduction for tax paid on inputs, and also those general consumption taxes where elements of value-added, sales or cascade taxes are combined. 5120 Taxes on specific goods and services—excises, profits generated and transferred from fiscal monopolies, and customs and imports duties as well as taxes on exports, foreign exchange transactions, investment goods and betting stakes and special taxes on services, which do not form part of a general tax of 5110, are included in this category. Social service contributions (category 2000) In contrast to Australia, many OECD countries have significant social security contributions (category 2000). For example, table D in OECD (2014, p.31) presents tax revenue, as a share of GDP, across sub-sectors of general government for each OECD country; social security contributions are included as a separate sub-sector. OECD (2014, see paragraphs 7-8 on p.319) notes that compulsory social security contributions paid to general government, are treated in category 2000 as tax revenues. Being compulsory payments to general government they clearly resemble taxes. They may, however, differ from other taxes in that the receipt of social security benefits depends, in most countries, upon appropriate contributions having been made, although the size of the benefits is not necessarily related to the amount of the contributions. Better comparability between countries is obtained by treating social security contributions as taxes, but they are listed under a separate heading so that they can be distinguished in any analysis. Social security contributions which are either voluntary or not payable to general government are not treated as taxes, though in some countries, as indicated in the country footnotes, there are difficulties in eliminating voluntary contributions and certain compulsory payments to the private sector.