Overview
VAT (Value Added Tax) is a tax added to most products and services sold by VAT-registered businesses.
Businesses have to register for VAT if their VAT taxable turnover is more than £90,000. They can also choose to register if their turnover is less than £90,000.
But it kind of is, isn’t it? I bought a marble table in India, shipped it to UK, and had to pay VAT to receive it. I assumed the intention was that I could have bought something in the UK. Same incentive as a tariff. Or is it just HMRC making sure they get theirs?
That’s the part I forget because it’s built in to the price. I line that better than the American way, but the American way prints out a list of all the taxes you’re paying (after you get to the counter and realise the price is not the price)
Yes, that's about it - tariffs are designed to discriminate between imports & home produced goods; VAT is a consumption tax, designed not to discriminate between imports & home produced goods. @danneidle.bsky.social is very good on this stuff.
Comments
Overview
VAT (Value Added Tax) is a tax added to most products and services sold by VAT-registered businesses.
Businesses have to register for VAT if their VAT taxable turnover is more than £90,000. They can also choose to register if their turnover is less than £90,000.
VAT: Don’t care where you buy it, you bring it here, we want ours.
Tariff: Build it here or pay more if you decide to import.