Vat

[Sheridan]

what is it? what does it mean, and why is used?
educate me you brits!

[Paddy]

Value Added Tax

[Sheridan]

so, is that like a sales tax that the country imposes?

[decadnids]

yes - its not on everything tho - its 17.5%

[Sheridan]

jesus! 17.5%. that seems like a lot!
what is the tax applied to?
exported/imported goods?

[wheezer]

VAT is not just uk, and in finland it's 22%, for example. in germany it's 16%.

as far as I can remember, in the us sales tax was on everything one bought inside the state, wasn't it?

in europe it's on everythang, unless you have a vat number - i.e. a registered company / organization of some sort

[Lady E]

there are quite a few things in this country that do not include VAT that if you are a small business, you wish they did - rail and air travel, postage (via the post office), storage costs, food purchased within a 15 mile radius of where your business is registered...this is all the fascinating stuff i have gleaned over about 6 years of being VAT registered.

im now strongly considering de-registering because it is a pain in the arse.

sheridan if you are VAT registered it means you have to charge 17.5% extra to your UK customers and owe that to the VAT man. then you can reclaim any VAT you have paid on purchases. the difference is either repaid to you or you have to pay to them. there is some EU business as well, but the rule i use is that if the company i am invoicing is VAT registered in an EU country then no VAT is charged.

it was introduced in the 1970s or something, probably after the metric currency was brought in...you can't have 17.5% of 2 guineas or whatever.

well sheridan you did ask.

[decadnids]

emma - you only have to be Vat registered if your turn over is something like 52K a year, i found it a total pain being vat registered.

[Lady E]

Originally posted by decadnids
emma - you only have to be Vat registered if your turn over is something like 52K a year, i found it a total pain being vat registered.


thanks decadnids, after 6 years of being VAT registered i do actually know that...

:)

it was our choice because we were buying a lot of equipment at the time and you can backdate it for 3 years so we got a healthy chunk of cash. and as long as we arent working with UK companies we generally get VAT refunds that are fairly decent - but over the past couple of years we have done a few things with UK people like novamute and parlophone and things so we have to charge big lumps of VAT and then try not to spend it...

[Phil]

Did you know Mcvities had to prove Jaffa cakes were cakes other wise they attract vat (as biscuits) in court. its truie

[MUX]

i'm going to these vat hassles too cause theyre really picky on it here. i was looking into trust funds in the BVI as they much cheaper and easier. that way ill be 100% vat except..

still need to check it out better

[stinkfinger]

vat is a cunt

[Sheridan]

thanks for the info emma.

@ wheezer: yeah, sales tax is added to everything. except bibles for I think all religions. I worked at a bookstore for a bit and I know that the christian bible has no sales tax, but I can't remember if the quron does or not. also, sales tax here is not a national thing, meaning it doesn't go to the national government. it is a state and in some cases city thing. like the sales tax in virginia is 4.5% (5%). but here in atlanta it is 7% and then in other parts of georgia it is like 4 or 51/2%. so it changes from region to region.

there is some talk of having a national sales tax and getting rid of personal income taxes. which would make things a lot more fairer in regards to how much people pay. since the middle class carry the heaviest tax burden out of anyone else in the states.