Why is VAT accepted?

<pedantic> VAT is not payable on every item you buy. Some things are charged at 15%, some things are charged at 5% such as electricity, gas, kids' car seats, sanitary products. Some items are charged at 0%, and some things are VAT exempt.

Examples of zero-rate VAT include books, magazines, food (but not sweets, takeaways, kids' sweets, alcohol), water, kids' clothing, houses (!), public transport, air fares... the list goes on and on and on.

Examples of VAT exempt stuff includes banking, gambling, property, postal services (but only if run by Royal Mail and not if managed by someone else!), medical services, education (but not training courses).

Just thought I'd share that with you.

</pedantic>
 
Last edited:
It's not a silly thing i'm on about. Yes the government make lots of money on it, but where is the logic. I go to a shop, the shop sells me an item, the shop sourced the item for the makers. WHY DOES THE GOVERNMENT GET MONEY OUT OF THIS.
Because they made a law that says they do. If you don't like it, vote for someone who is prepared to do something else (good luck finding them), or stand for election yourself.

By the way, you can expand that argument to any tax. Why does the government get income tax from your salary? Did they do 22% (or 40%) of your work? I don't think so.
 
vat is need to raised money. I agree government could and should reduce expenditure.
It is also used for persuading us to change our buying habits.
 
I'd love that to happen but how do you tax people who normally wouldn't pay as much as others?

How would government introduce all the daft little taxes that drive us up the wall either :D

1 fixed tax payment monthly based on your wage, it would make sense, why should a rich man pay the same vat on an item as a poorer person.
 
And why is that? It is the right thing to do - or at least only make it for people who really need it not chavs.

1) It will have a negative impact on aggregate demand.
2) It would be extremely unpopular.
3) It goes against the core beliefs and ideology of the Labour party and the Lib Dems.
 
Because they made a law that says they do. If you don't like it, vote for someone who is prepared to do something else (good luck finding them), or stand for election yourself.

By the way, you can expand that argument to any tax. Why does the government get income tax from your salary? Did they do 22% (or 40%) of your work? I don't think so.

i'm not working enough hours to be in any taxband yet :D but don't worry, when i am, i will soon start moaning.

Also THANKS OCUK, just had an e-mail saying my speakers have been shipped :D
 
It is wierd that not only are wages taxed, things you buy are also taxed again. And if you die and leave your things to someone, they get taxed. And you pay other taxes constantly like road tax, council tax.
 
1 fixed tax payment monthly based on your wage, it would make sense, why should a rich man pay the same vat on an item as a poorer person.
That's a fallacy too. It's not proportional for sure, but how many rich people would you find buying an £8 speaker when they can easily afford an £80 or £800 speaker.
 
No it doesn't, if that were true the average rate of road tax would be £1250 per year...

Sorry, I meant via Road Tax AND Fuel Duty

AA had the figures somewhere on their website that I looked up for a previous thread at some point.
 
It is wierd that not only are wages taxed, things you buy are also taxed again. And if you die and leave your things to someone, they get taxed. And you pay other taxes constantly like road tax, council tax.

How else is New Labour meant to pay of the mountains of debt it has built up over the past 10 years?
 
As an additional point, taxing consumption is a tried and trusted method for bringing in revenue, used around the world - either to limit that consumption or purely as a revenue-generator. In some places counties (states) and even cities levy their own VAT-like tax.
 
Tax on earnings and then tax on stuff you buy really gets my goat.
I like tax on tax (VAT on fuel duty) :D

Taxing consumption is a tried and trusted method for bringing in revenue, used around the world - either to limit that consumption or purely as a revenue-generator.

By GDP the countries are as follows:
1) USA
2) Japan
5) GB

USA has ~5% sales tax (0% in some states, 0% interstate but on average it is 5% I'd say)
Japan has 5% sales tax

SO why are the largest 2 economies the planet able to make do with 5% then - while we are suckers with 15-17.5%?
 
SO why are the largest 2 economies the planet able to make do with 5% then - while we are suckers with 15-17.5%?

For a start the populations are larger. Per Capita we are almost equal.

Also in America there is no NHS equivilant (ok, so the NHS isn't exactly brilliant in this country but at least for most things it is free. Do you fancy having to fork out for Healthcare as a necessity?
 
SO why are the largest 2 economies the planet able to make do with 5% then - while we are suckers with 15-17.5%?

They have FAR more people ;) so we need higher taxes to generate the same level of money?
*yes I have no idea and just stating the obvious

Edit - D'oh beaten to it to state the obvious :p
 
Back
Top Bottom