If turnover, as we mentioned, represents the largest part of a company'

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Turnover classification total turnover: represents the total income obtained from the sale of goods or the provision of services. For a company to make a profit, the CAT must be greater than the total volume of expenses. average turnover: represents the average income obtained for a certain type of product or service provided by the company. marginal turnover: shows the decrease or increase in a company's income as a result of the sale of a certain type of product or the provision of a certain service.



critical (minimum) turnover: represents the sales revenue needed to cover British Student Phone Number List the company's expenses Turnover & Profit – What's the Difference? Both the turnover and the profit of a company represent two very important financial indicators in determining its performance. They should not be confused. If turnover, as we mentioned, represents the largest part of a company's income, profit is the profit left after all expenses (with staff, with raw materials, with utilities, with rent, with depreciation and taxes, etc.) have been subtracted. from total income. Profit = total revenue – total expenses Is the tax paid on the turnover.



Depending on the turnover, but also on the number of employees, there is a different taxation system. Companies that have a turnover of more than 500,000 euros and those that obtain more than 20% of revenues as a result of the provision of consulting services pay a tax of 16% of the profit. Only the companies that kept their micro-enterprise status after the changes made by Government Ordinance no. 16/2022 pay a turnover tax of 1% . Application of VAT to turnover The value of the turnover also determines whether a company can be/must be a VAT payer or not. According to the legislation in force, a company whose turnover does not exceed 300,000 RON has the possibility not to pay VAT.