It’s a tax on every stage of the process, nobody “switched to it”. All for the government, that didn’t contribute to the process. That doesn’t make a train stop at my mom’s home town anymore even though their country is smaller than my state but has all the tax money. Including price in price is nothing. The SIZE is the important part. I balked at 9% sales tax in my state, used to be 6%. Yours is amplified 20% times 5. Design, execution, physical build, assembly, final product. That’s crazy.
And why ever say “we switched to VAT”. It’s just a name. Tax, VAT, Tariff. All words. You’re probably a bot anyway.
I balled at 9% sales tax… Yours is amplified 20%, times 5… It’s just a name.
This shows deep misunderstanding in what VAT is and how it works. It’s not “a flat out 20% sales tax with a different name”. The concept is different. But I do not have neither time or energy to argue on the internet.
That’s not how VAT works. As a business you pay VAT as an input tax. You can deduct that from your VAT liability at point of sale. The business is liable to pay VAT on the sale to the end consumer but can (and does) recharge it to the customer. Not a tax expert at all, so I might be off a bit - but I am sure that you don’t pay full VAT on every R&D, production, sale step along the process.
It’s a tax on every stage of the process, nobody “switched to it”. All for the government, that didn’t contribute to the process. That doesn’t make a train stop at my mom’s home town anymore even though their country is smaller than my state but has all the tax money. Including price in price is nothing. The SIZE is the important part. I balked at 9% sales tax in my state, used to be 6%. Yours is amplified 20% times 5. Design, execution, physical build, assembly, final product. That’s crazy.
And why ever say “we switched to VAT”. It’s just a name. Tax, VAT, Tariff. All words. You’re probably a bot anyway.
This shows deep misunderstanding in what VAT is and how it works. It’s not “a flat out 20% sales tax with a different name”. The concept is different. But I do not have neither time or energy to argue on the internet.
Because we used to have sales tax.
Gee. Thanks?
That’s not how VAT works. As a business you pay VAT as an input tax. You can deduct that from your VAT liability at point of sale. The business is liable to pay VAT on the sale to the end consumer but can (and does) recharge it to the customer. Not a tax expert at all, so I might be off a bit - but I am sure that you don’t pay full VAT on every R&D, production, sale step along the process.