Posted 10 August 2011 - 08:53 PM
I love my VAT, 25% extra to my firm's bills, which I then can spend on new computer stuff and licenses and other things that are relevant (but fun) part of my business. I send a bill of 2000, adding 500 in VAT, then i buy something for 1600+400vat, spending 400/500 VAT of what I have acquired through work. I then end up with 400 surplus that, if i don't use it that year on my firm, have to tax as personal gain, and 100 worth of VAT that the government also gets, leaving me with about 300 after taxes depending on the percentage.
If i wasn't registered for VAT, I'd have to send a bill for 2000 without vat, and buy the thingie for 2000 with no possibility to subtract the VAT from my own VAT account, leaving not a penny for me. 300ish vs nothing is an easy sell imo.
As long as you are not the end user, VAT is a highly motivational way to keep the money flowing down to the end user. The government gives subsidies and lesser percentages of VAT(14%) on foodstuff and other items to keep the poor less poor. There are also services and items that have no VAT: health services(dentists, psychologists, chiropractors etc etc.), social services(kindergarden, private retirement homes, home-help services), education(private schools, driving schools etc.), cultural services( theater, opera, ballet, circuses, concerts etc), financial services(insurance, financing services, monetary transactions, stock trading etc etc.), lottery services(the public ones I guess, since they are the only "legal" ones), ceremonial services(funerals etc), public authority services(passports and driver licences), and some small private property and renting out private property transaction thingies.
Besides, most western nations have some sort of VAT system in order, but they are usually very weird and filled with loopholes. I like it when the rule is not the exception.
"I give you private information on corporations for free and I'm a villain. Mark Zuckerberg gives your private information to corporations for money and he's 'Man of the Year.'" - Assange