Pretty sure we've had vat since before we joined the eu.Eastern Front wrote:Mick,Son of a gun-ner wrote:Mr Front, I know import duties are from my own government.
In Europe we have this extra tax, VAT, Value Added Tax, that's 20% and is added to the price of MOST things. Therefore, any products entering the UK and Europe are subject to it.
When you're part of the EU (it works as a union like the USA), this tax is already applied to goods all over Europe. When I purchase a tank from Germany, it's already including the VAT applied in Germany, therefore I don't have to pay it again.
So, when Britain leaves the EU, our government still charges the VAT on goods and imports. But also the EU will have their VAT on their goods within their member countries.
What I want to know is, will we now start paying British VAT on that same tank from Germany which has already got EU VAT applied.
I am to familiar as I lived in Germany. The tax your paying is EU assigned, I think when you leave the union that tax will no longer exist. I agree though, what will the UK assign as an import duty, I am thinking it will be less, after all, that is another reason I believe the people want to "Brexit", their lives have been dictated to by people they did not elect! a bunch of stuffed shirts in Brussels! Am I right?
Mick, if we stay in the customs union we won't pay vat or duty same as now, if we leave I would guess same rules that currently apply to none eu imports apply.
But we don't currently know. Vat should be a zero sum game assuming the seller deducts it. However I think some smaller euro makers don't charge vat as they're too small, so we would loose out there.