Steve Mills on tue 4 may 10
Here in the UK, VAT is currently at 17.5%. There is an annual sales figure
below which the maker is exempt, but above that it kicks in on all sales.
There are exemptions e.g. Food items, but not too many.
As has been stated before any VAT paid on goods purchased by the maker can
be reclaimed, and only the percentage paid by the customer is forwarded on
to the Government.
It's predecessor Purchase Tax was complicated, labyrinthine, and arbitrary
(or so it seemed), and required the extensive use of a Manual several inche=
As a Maker the unwritten rule was that the Purchase Tax Inspector was your
best friend; he/she could make or break you, "Little Tin God" was putting i=
VAT in contrast was (and some feel still feel is) a blessing in its utter
I found it a blessing because it MADE me do my accounts quarterly, rather
than a mad scramble at the end of the Financial Year!!!
2010/5/4 Claudia MacPhee
> You probably didn't know that Canada also has a VAT tax that we call the
> GST. Originally it was 7%. The party now in power has taken it down to 5%
> (won't go into the reasons etc. and my opinion on it).
> As a business you get refunded any GST you pay. HOWEVER, you have to
> charge it when you sell retail and remit it to the Government. No charges=
> wholesale orders. It is a royal BITB. With the Free Trade Agreement there=
> no duty on ceramic materials crossing the border. Same on finished goods.
> Just the stupid GST.
> In the Yukon we have no sales taxes so are better off than most
> provinces. Some poor devils have a thing called "harmonized taxes". They =
> up to 15% on just about everything they buy. Buy a litre of yogurt, no ta=
> Buy a small container, pay tax!
> If you guys are serious about a revolution this should start one! We put
> up with it because Canadians are pretty peace loving and limit their
> protests to complaining.
> Claudia MacPhee Tagish, Yukon
> Videos that have everyone talking! Now also in HD!
Growing old is inevitable, growing up is optional!
Paul Lewing on tue 4 may 10
It seems to me that a VAT hits hardest on those industries that add
value to their products through creativity. In industries like
groceries, for example, the markup is normally very small, perhaps as
low as 10%. In most retailing operations, the wholesale price is
often doubled, or some markup in that neighborhood. Contrast that to
an artist who takes $25 worth of clay and makes that (perhaps
mythical) $25,000 sculpture out of it. Or take a $10 piece of paper
and make a $5000 painting on it. Or even someone who takes a 50 cent
CD and puts a software program on it that they sell for $100. I
assume that in calculating your VAT, you don't get to deduct the time
you put into your product, either directly or through paying
employees, correct? Only the out of pocket monetary expenses?