Contexte: "Firms had to pay various turnover taxes in "cascade", ie, they could not deduct the taxes they paid on their inputs from their output taxes, so as components passed down the production chain they attracted taxes on the top of other taxes"
When a company that is registered for value added tax (VAT), buys goods or services from another supplier, VAT is charged and is currently 17.5% of the purchase cost. This is known as input tax.
Similarly, when the company sells its own goods or services it charges its customers VAT at the same rate. This is output tax.
Once a quarter, the company has to complete a VAT return, giving details of its input tax and output tax. The difference between output tax and input tax is payable to HM Revenue & Customs. If input tax is greater than output tax the company can claim back money from HMRC.
A ma connaissance, on parle de "TVA encaissée" et de "TVA versée ou décaissée" et cela correspond exactement à la définition ci-dessus.
Les déclarations de TVA sont présentées chaque mois ou chaque trimestre, selon les cas.
Turnover Tax is not the same as VAT. It is I believe a direct tax on the activity that does not allow for reimbursement. As the sentence would seem to imply, taxes are paid on purchases (input tax) but cannot be reduced from sales (output) tax. VAT replaced this system in most countries but I believe that it still exists as a sort of sales tax in the US.