It’s time to do the quarterly VAT return.
I know this is hardly an original thought but…
Fuck me slowly with a sweet potato while floating in a tub of battery acid…
Is VAT not just the most appallingly obscene tax ever thought up by any Euro-wanker in the entire history of Euro-wanking?
It’s a tax on behalf of the rich and against the poor.
All big companies and sensible people with loads of money are registered for VAT and ultimately don’t pay it. People on lower incomes and people struggling to make ends meet – single parents, the unemployed, the disabled, the retired, pensioners – are forced to pay it.
What sort of tax is that?
It’s a tax which very large companies do not pay and which the unemployed do pay. It’s a tax which specifically targets those least able to pay it.
For those registered, VAT is a tax where the money just goes round in a circle and the government does not benefit at the end of the process; it just keeps loads of bureaucrats in pointless work.
In a simplified but basically true break-down…
Company A adds 20% VAT on top of the price they really want to charge and then bills Company B 120% of what they need to charge.
Company A then pays the 20% VAT money it receives to the Taxman (minus loads of expenses) and Company B then claims back from the Taxman the whole 20% of the 120% they paid.
In effect, Company A collects 20% VAT and hands it to the Taxman (minus expenses – so they give less than the full 20% to the Taxman)… the Taxman then hands back to Company B the full 20% VAT which Company B shelled-out. So:
- Company B has lost some money for a short time but ultimately pays nothing.
- Company A has passed on less than full 20% to the Taxman, who has then paid the full 20% to Company B
- So Company B has, ultimately paid nothing and the Taxman has paid out more than he received.
At this level of companies, millionaires and other people who can afford accountants, the whole thing goes round in a circle and creates jobs but not tax revenue. Am I missing something?
There are points in the system where Company A and the Taxman are holding onto money and earning interest on the money from bank accounts – well, Company A is. But that’s the basic system. The money goes round in a circle if you already have a lot of money.
At petrol stations, for example, companies and rich entrepreneurs and businessmen, in effect, do not pay any VAT at all – they claim it all back. But the less well-off who own cars have to pay the full extra 20% which they can’t avoid.
It’s a tax which specifically targets the less well-off which discriminates in favour of the better-off.