<GDP-by-TAX APPROACH (using TAX Returns declared to government)

All entities submit their yearly tax returns to the government for the current fiscal year. Therefore, the GDP-by-tax approach can be used to find GDP amount by government officials and the ones having acces to tax database.

REMARK: Please note that this GDP found by using the folowing application will give the official GDP figure which excludes the GDP caused by unofficial (e.g. shadow, unrecorded) ecomomy, moreover it is GDP at curent prices. However, the GDP anounced by government is the sum of both official and unofficial GDP, and is GDP at constant prices.

Net_TOS is the sum of all Net VAT ( or sales tax) declared to government with VAT returns in a fiscal year, and sum of all non-recurrent property tax on property sales and sum of all stamp tax/duty on contract values declared to government for the current fiscal year (V)

Net_TOS is the countrywide total of the sum of all;

  • net VAT or net sales tax,
  • non-recurrent property tax on property sales,
  • If not negligible; stamp tax/duty on contracts declared to government for the current fiscal year by economic entities, non-profit entities, and not-for-profit entities.
TIC (tax in cost) represents the sum of all Property tax, Import tax, License tax, and Other taxes (i.e. PILOT taxes) in the tax returns declared to the government for the current fiscal year (T)

Wages is the countrywide total wage amount declared to government for the current fiscal year (W)

The profit in tax returns cannot be used in GDP Calulations. It contains depreciation flaw. Therefore, the profit should be calculated by the following method
Sales is the total sales (excluding VAT) in tax returns declared to government for the current fiscal year (S)

Sales excluding VAT is the countrywide total of the sum of all money received during the current fiscal year by economic entities, non-profit entities, and not-for-profit entities via rent, interest, goods and services including durable goods (or goods that are subject to depreciation), donations, fund raising, fees and so on.

Purchases is the total purchases (excluding VAT) in tax returns declared to government for the current fiscal year (P)

Purchases excluding VAT is the countrywide total of the sum of all payments for rent, interest, goods and services including durable goods (or goods that are subject to depreciation), donations, fundraising, fees, and so on made by economic entities, non-profit entities, and not-for-profit entities during the current fiscal year.

Profit to be used in GDP calculation is (*) (Profit = Sales - Purchases - Wages - TIC): 0

Now the profit amount found above could be used in GDP equation:

GDP FOUND BY USING THE PARAMETERS GIVEN ABOVE IS (**) (GDP = Profit + Wages + TOS + TIC): 0

(*) Please note, TOS is all the taxes added on to the prices like VAT or Sales tax whichever is used in your country, and it includes property tax on property sales, and stamp tax added on the price of contracts.

(**) Please note, if the sales and percentages are entered using official, then the GDP amount found above represent the formal GDP with current prices. That is, you should add informal GDP amount to compare with the official GDP (with current prices) anounced by your country.