What is the difference between purchaser prices (VAP) and basic prices (VAB)?
Our GDP series is reported at purchaser prices—i.e., market prices. The value added components of GDP for VAP countries are at producer prices, while those for VAB countries are at basic prices. Here are definitions of the different type of prices and the inter-relationship between them: Basic price The basic price is the amount receivable by the producer exclusive of taxes payable on products and inclusive of subsidies receivable on products. The equivalent for imported products is the c.i.f (cost, insurance and freight) value, that is, the value at the border of the importing country. Producer price The producer price is the amount receivable by the producer inclusive of taxes on products except deductible value added tax) and exclusive of subsidies on products. The equivalent for imported products is the c.i.f value plus any import duties or other taxes on imports (minus any subsidies on imports). Producer prices = Basic prices + taxes on products (excluding VAT) – subsidies on prod
