Alcabala is a historical term referring to a tax or duty imposed on the sale or transfer of goods, particularly in Spain and its former colonies during the colonial era. It was a form of indirect taxation levied by the government on various commercial transactions, including the buying and selling of land, livestock, and other commodities. The alcabala tax was typically calculated as a percentage of the transaction value and collected by local authorities. The term is derived from the Arabic word “al-qabala,” meaning “the tax” or “the duty.” Although the alcabala tax system has largely been abolished in modern times, its historical significance remains in the economic and fiscal history of Spain and its former colonies.
Alcabala is a tax on the sale of goods and services in some Latin American countries, including Ecuador, Peru, and Bolivia. It is similar to a value-added tax (VAT) and is typically calculated as a percentage of the sale price. The revenue generated from the Alcabala tax is used to fund local government services and infrastructure projects. Failure to pay the Alcabala tax can result in fines and penalties.
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This glossary post was last updated: 29th March 2024.
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