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Scrap VAT exemption

Comment 24th July 2010

Scrap VAT exemption.  For everyone, every organisation.  Because many more people and organisations would pay it, it would be able to be reduced.  Probably to single figures.

Many SMEs spend a lot of time figuring it out (for those who do not know, business people consider VAT a way of making commerce collect taxes for the government).

Prices to the consumer would probably not change – just be differently built up – as the firms supplying retialers and supply chains would have to charge slightly more to cover the tax they would now pay, instead of andlessly doing the run-around to avoid it, adding it up every quarter etc.

Value Added Tax whatever it's purpose, applies no less to firms supplying firms than to retailers supplying end consumers.

Because it would be so much lower, it would no longer be thought unfair to apply it to everything, objections ought to be weakened eg about gas being taxed with VAT.

I rather suspect that in the end, VAT is a way of making 'normal' people subsidise the lucky few who benefit from not paying it too.

VAT evasion would be a thing of the past.  Second hand cars would be VAT-able, everything, no question.

It is a purchase tax, in all but name.  Many other countries have it, why not just make it dead simple.  Avoidance would be impossible – 'How much for cash mate?' would be obsolete.

My guess is, it ought to be 10% across the board, for everything bought and sold, used or new.  Ebay would have to pay, everyone would.  It's a doddle to work out at 10% as well!

best regards,

Ian Margetts, West Yorkshire.

Why does this matter?

To recap-

Saves a fortune in software, calculations, avoidance and the investigation thereof etc.

Massively simplifies the current system.

Fairness – no-one will have some flukey scheme cooked up to avoid it – every purchase would be taxed.

Massive boost to revenue, and easy to alter in future, spreading the cost among those who buy most.

Best regards, IRM.

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