And On Your Food?
Only In The United Kingdom?
How Stupid Is That?
2007-08-01 03:31:13 · 5 answers · asked by missmollie 4 in Business & Finance ➔ Taxes ➔ United Kingdom
It is called Value Added Tax and it is not just the UK but in all European Union countries (including the ones who just clamoured to join!)
It is not stupid in that the original tax concept seeks to raise taxes on the difference in the cost of things and what they are sold for - so it is unlike the USA sales tax to that extent (a fact a lot of US businesses keep getting wrong). Thus it is meant as an alternative to income tax but so far nobody with VAT dared to get rid of income tax.
In the UK we make it gentler by exempting basic foods, childrens' clothes, all books and some charitable expenses.
2007-08-01 04:38:32 · answer #1 · answered by morwood_leyland 5 · 0⤊ 0⤋
To answer the part of your question that says "only in the UK?" - in the US, sales tax rules are set by each state for their state - some charge tax on food, some only on food eaten in restaurants - and most charge tax on clothes. So it isn't just the UK.
2007-08-01 11:18:42 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
I am from United States-Pennsylvania
We have taxes on EVERYTHING! It is stupid in a way but taxes $ is used for repairs jails hospitals etc...
2007-08-01 10:36:40 · answer #3 · answered by bear 2 · 0⤊ 1⤋
should b 4 branded clothings n food such as caviar.
2007-08-01 10:35:53 · answer #4 · answered by 26250403 2 · 0⤊ 0⤋
Um, yeah...
2007-08-01 10:33:45 · answer #5 · answered by Confused 2 · 0⤊ 0⤋