Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.1 6/24/83 (MC840302); site dido.UUCP Path: utzoo!linus!philabs!cmcl2!seismo!mcvax!enea!dido!annika From: annika@dido.UUCP (Annika Brobach) Newsgroups: net.politics Subject: Re: VAT Message-ID: <158@dido.UUCP> Date: Thu, 8-Nov-84 13:40:41 EST Article-I.D.: dido.158 Posted: Thu Nov 8 13:40:41 1984 Date-Received: Sat, 10-Nov-84 06:33:35 EST References: <701@oliven.UUCP> Organization: ENEA DATA, Sweden Lines: 37 (Please note that I am borrowing someone else's terminal whilst on a visit to Sweden. PLEASE reply to !ukc!qtlon!inset!jmc). I CAN'T BELIEVE IT!!! Someone thinks VAT is a good idea. I suggest that the author of this article spends approximately 5 nanoseconds looking through one page of all the code I have written to manage my own tax affairs to take account of VAT, and then see if he thinks that anything is better than the US system. Talk about the grass being greener...... VAT must be the most inefficient (in terms of collection cost) taxes in human history. It probably encourages more dishonesty than any other tax (Try getting a British workman to take anything other than cash) ever invented. In terms of paperwork it is ridiculous. Consider a product with a VAT rate of 10% Firm A sells it to firm B for 100 pounds, B pays 110 pounds, A sends 10 pounds to the taxman. B is VAT-registered, and claims 10 pounds back from the taxman. If B sells it on to C the same sort of thing happens until a non-VAT registered person (a consumer) is found who cannot reclaim the tax. This means that if B is, say, a wholesaler, all the transactions he makes with the taxman are completely void in effect. All he can hope to do is to sell in advance and get interest on the tax due until the next VAT period ends. If he is making a loss, it works the other way round and he is subsid- ising the taxman. If the US gets VAT it is mad!!! John Collins !ukc!qtlon!inset!jmc tel: +44 727 57267 mail: 47 Cedarwood Drive, St Albans, Herts, AL4 0DN.