What is Value Added Tax (VAT). Who pays it and how is it calculated?
2007-04-12 12:46:21 · 4 answers · asked by Johnny S 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
It is included as part of the price of the merchandise, vs sales tax in the US which is added on to the listed price of the merchandise. However, for all other purposes, it is the same kind of tax. One advantage is that foreign visitors can often recover some of the VAT they paid while in country.
2007-04-12 12:50:24 · answer #1 · answered by Still reading 6 · 2⤊ 0⤋
Nobody's yet mentioned that it's basically the British sales tax. Last I checked it was 17%, and, unlike in the U.S., it's already included in the price of an item. So if the tag in the shop says 10 pounds it really is 10 pounds, but the VAT has already been added in.
Also unlike in the U.S., if you're a foreigner you can frequently get it refunded when you leave the country with the item.
2007-04-12 19:57:01 · answer #2 · answered by Anonymous · 2⤊ 0⤋
Not only Britain, other countries which have a system just like Britain also have this. (i.e. Australia, Canada, the English-speaking Caribbean, etc.) all have various VAT systems. Over 120 countries in the world have a VAT system.
British Guiana ("Guyana"), South America
http://www.gina.gov.gy/vat/vatupdate.html
Grenada
http://www.gov.gd/images/downloads/Grenada%20VAT%20white%20paper.pdf
2007-04-12 20:33:46 · answer #3 · answered by joelcpayne 2 · 1⤊ 0⤋
It's just another was to bleed us dry.
2007-04-12 19:51:37 · answer #4 · answered by Teenie 7 · 0⤊ 0⤋