Category Archives: Tax

Important Information To Know Before Exchanging Currency

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Apart from trading in foreign exchange, there are many other reasons that require you to deal with foreign currencies. You may have to pay the fees for an international university, buy property in a foreign country or just travel to a foreign country, all of them need you to deal with foreign currencies.

While dealing with foreign currencies, a little bit of understanding about the terms such as currency exchange rate, how and when to exchange the currency and different methods available for currency exchange will ease the tension and help you to get a better rate.

  1. Currency Exchange Rates

Currencies are traded in a marketplace known as forex or foreign exchange market. This market is open 24/7 and the rates of currency exchange keep fluctuating every minute. To make the process simpler, banks and financial institutions fix a daily rate for buying and selling currencies. The selling rate is usually higher than the buying rate and this difference is known as exchange margin. Apart from this, they also charge some fees. When you are exchanging money in your country or a foreign country, it is important to pay close attention to the exchange margin and the service fees. Choose a bank or forex vendor who offers the best exchange rate for your money.

  1. How and When to Exchange Currency

There are multiple options to exchange currency. You can exchange currency at your home country or at the destination country. You can also use the services of online currency exchange vendors before you travel. The best option is to choose a bank or financial institution in your home country that offers the best currency exchange rates. Your home bank may offer competitive exchange rates and sometimes charge less service fee. You can visit the websites of foreign exchange vendors and financial institutions to get free quotes and then choose the one who offers the best rates and lowest service charges. If you need to exchange currency in a foreign country, enquire about a regulated and trusted foreign exchange vendor who offers good rates.

  1. Different Methods to Exchange Currency

There are different methods for currency exchange. For example, you can exchange currency at the airport, at currency exchange kiosks near tourist attractions, banks, currency exchange vendors, ATMs of your home branch or the foreign banks associated with your bank or use credit cards. However, airports, kiosks and foreign banks may prove to be costly as the exchange rates are very high. It is advisable to choose a reputed financial institution that offers lowest exchange rates and has services throughout the country. Do not opt for black market vendors as there are chances of counterfeit currency and theft.

Now that you are equipped with important information on currency exchange, go ahead and choose the best option that suits your preference.

Sales Tax From Fireworks Products Lower Than Expected In West Virginia

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A study conducted by the state of Virginia showed that the tax revenues earned from sales generated by fireworks products in Western part have been lower compared to the figures before. Though there are many businesses processing their application for a Virginia Tax ID, the industry seems to be faced with a bit of a challenge.

The Tax Department of the state of Virginia published a report which was sent to the Legislature claiming that the sales of fireworks products from 2017 resulted to $710,000 which is payment for the safety fee of 12 per cent and the sales tax collections is about $355,000. The total of the two taxes only came to over $1 million and this is considerably lower compared to the yearly revenue which used to reach an average of $2.8 million since the bill was approved two years ago.

One of the main contributing factors to the reduction of the revenue in fireworks sales is the safety fee that the business retailers have to pay. The report states that the neighboring states such as Kentucky and Ohio are also charging the businesses sales taxes for selling fireworks products but there is no additional charge which is referred to as the safety fee.

According to the report, another reason is that Ohio and Kentucky have already established their domain thus they have loyal customers and their businesses locations were already known in these two states. This is different from West Virginia where the sales setups are only temporary.

The state said that 75 per cent of the safety fee is allotted for the veterans who are housed in nursing facilities while the remaining 25 per cent is given to the people who are volunteering at the fire departments. The legislation was actually approved because of its merit which is the safety fee.

The report also states that because of the recent trends, it is not likely that they will see an increase in the proceeds received from the safety fee. Before the law was approved, novelty fireworks are the only products allowed but since then application for a Virginia tax ID has ballooned especially for businesses willing to delve in the fireworks industry.