Maybe the Americans got this right afterall

[Simster]

As everyone knows, the North Americans quote everything before state/provincial and federal value added tax is applied. So in other words, if you you see a CD for sale at $9.99, you'll end up paying $10+ for it.

I always found this very annoying, and still do when I'm over there. Just tell me what I'm expected to pay, tax is one of lifes guarantees I'm afraid.

However, I think I'm open to changing my mind on the subject. I am totally f***ed off that we have seen VAT leap from 10% when first introduced in 1974, to double that as of Jan 1st this year. As far as I can recall, I don't think there has ever been a period where this has reduced.

In actual fact, looking at wikipedia, our VAT rate is broadly in line with the rest of Europe, but nevertheless I'm just not convinced Europe has got it right.

My main issue is that it is an easy tax to hide. Sure, we all know it is 20%, but when you buy anything in a shop, it just isn't all that apparent how much we're being clobbered. This is in stark contrast to income tax. You sure as hell realise what you're paying in IT and NI when it's deducted at source.

Personally I am beginning to think it is high time shops considered quoting prices ex-VAT. At the very least, I think it'll make it less transparent and people can make more of an informed choice of how they prefer to be taxed.

 

[hans kraay fan club]

Disagree. The ticket price needs to be what you're paying. people don't want to walk around with a calculator so they know what they can afford.

If the shope want to show a breakdown, then fine.

 

[Simster]

Disagree. The ticket price needs to be what you're paying. people don't want to walk around with a calculator so they know what they can afford.

If the shope want to show a breakdown, then fine.

That has always been my attitude but I am getting a little pissed off with the fact that a procession of governments seem to pile onto the VAT rate without ever reducing it. And do they walk around with calculators in the US and Canada then? Bear in mind the total tax will differ depending on which state/province you're in!

 

[bhaexpress]

Disagree. The ticket price needs to be what you're paying. people don't want to walk around with a calculator so they know what they can afford.

If the shope want to show a breakdown, then fine.

I agree, the American system is very annoying. I lived in Georgia but the nearest decent sized city was across the border in Tennessee which had a different tax rate. The sticker price is what you should pay end of.

 

[Mendoza]

Didn't VAT go down to 15% a couple of year ago?

 

[Everest]

to double that as of Jan 1st this year.

Jan 4th

I'd much rather see what I'm paying.
If you want or need something badly, you'll buy it.
Show the full price.

 

[Silent Bob]

Perhaps they should also not include their own profit margin?

 

[Lyndhurst 14]

Living in the States I find the State Tax addition annoying as I still get the money ready based on the sticker price. It varys considerably from State to State. A lot of folks In New York regularly head over to New Jersey when purchasing large items as the State tax is less. When I worked in Oregon it was zero.

 

[Marlton & Hove Albion]

Anyone who thinks overall US tax rate is lower than UK is sorely mistaken. The system here is very complex. Income Taxes (Federal, State, Local), Property Tax, Sales Tax, Social Security Tax, Healthcare Insurance (which is really a tax) depending on where you live, this will set you back 50% of gross income or more. I like living here BUT the taxation system is OUT OF CONTROL.

 

[ATFC Seagull]

Didn't VAT go down to 15% a couple of year ago?

This.

 

[Colossal Squid]

Didn't VAT go down to 15% a couple of year ago?

Yes. Gordon and Alistair lowered it for a year from 17.5% to 15% to ease the country's burden during recession (supposedly).

Entirely pointless move

 

[Don Quixote]

Yes. Gordon and Alistair lowered it for a year from 17.5% to 15% to ease the country's burden during recession (supposedly).

Entirely pointless move

It wasn't really as it helped to increase trade.

 

[Chicken Runner61]

The difference is what goods it is on. Here there is no Vat on food but I understand in Europe there is.

Isn't it 25% too!

Someone told me the other day that there is a bloke taking orders from people in France, buying the stuff from tescos and driving over to a pick up point to hand over the goods!

 

[Chicken Runner61]

Yes. Gordon and Alistair lowered it for a year from 17.5% to 15% to ease the country's burden during recession (supposedly).

Entirely pointless move

Yes I would much rather they had increased it by 2.5% and paid more like now!

 

[severnside gull]

the one that pisses me off is kids clothing which has no VAT but is barely any cheaper than adult clothing. It's just a licence for the shops to print extra dosh. Really should be VATable for all the difference it makes to the consumer

 

[Lyndhurst 14]

Anyone who thinks overall US tax rate is lower than UK is sorely mistaken. The system here is very complex. Income Taxes (Federal, State, Local), Property Tax, Sales Tax, Social Security Tax, Healthcare Insurance (which is really a tax) depending on where you live, this will set you back 50% of gross income or more. I like living here BUT the taxation system is OUT OF CONTROL.

Agreed. Some of my co-workers work in Manhattan but live in New Jersey which really causes them problems when they file their tax returns with the IRS as their property is taxed in NJ but their salary in NY. Mine is relatively straightforward as I live and work in NYC but even that took 2 trips to HR Block to get it sorted.

 

[goldstone]

I can see both sides of the argument, but I think I prefer an increase in VAT to an increase in Income Tax. That way you at least get to see your money before it is taxed ... and if you choose not to spend it, then no tax!

 

[Chicken Runner61]

Vat is a cancer though it grows and grows. With income tax you can choose to a certain degree what you want to pay tax on. With vat on petrol gas electric etc you can't.

Vat svespecially nice to people that can pass a lot of the stuff they buy through their business and claim it back

 

[Gazwag]

The difference is what goods it is on. Here there is no Vat on food but I understand in Europe there is.

No a lot of food has vat on

For example:
Wholly or partly chocolate coated biscuits
Gingerbread man decorated with chocolate (unless this amounts to no more than two chocolate eyes!)
Arctic Rolls
Sorbet
Chocolate bar
Nuts or fruits covered in chocolate or yogurt
Flavourings for milk shake
Potato crisps
Roasted or salted nuts without shells

and everything you buy from a take away or restaurant

 

[withdeanwombat]

Value Added Tax is an absolute joke,and how the value added can rise by 2.5% overnight is beyond me.It's a government tax pure and simple,so why not call it Government Added Tax,or Additional Government Tax so that we all know its value.