What is 'border-adjustment tax' in SAP ORG-LX-T9N - Team: Corporate Translation?

border-adjustment tax - Overview

• Component: ORG-LX-T9N

• Component Name: Team: Corporate Translation

• Description: A tax that is based not on where goods are producted, but rather on where they are eventually consumed.

border-adjustment tax - Details

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  Key Concepts: 
  A border-adjustment tax is a type of tax imposed on goods imported into a country. It is designed to level the playing field between domestic and foreign producers by making imports more expensive and exports less expensive. This type of tax is also known as a “value-added tax” or “VAT”. 
  
  How to use it: 
  The border-adjustment tax is used to encourage domestic production and discourage imports. It is typically imposed on goods imported into a country, but can also be applied to services. The amount of the tax varies depending on the country, but it is usually based on the value of the goods or services being imported. 
  
  Tips & Tricks: 
  When considering whether or not to impose a border-adjustment tax, it is important to consider the potential impact on both domestic and foreign producers. It is also important to consider the potential impact on consumers, as increased taxes on imports can lead to higher prices for consumers. 
  
  Related Information: 
  The World Trade Organization (WTO) has rules that govern the use of border-adjustment taxes. These rules are designed to ensure that countries do not use these taxes in a way that discriminates against foreign producers or creates an unfair advantage for domestic producers. It is important to familiarize yourself with these rules before implementing a border-adjustment tax.