CM767
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Value Added Tax On Your Country Or State

Sun Jan 03, 2010 11:47 pm

I am Panamanian, and on the 70s we got our first taste of VAT with the imposition of the ITBM ( Impuesto de Transferencia de Bienes Muebles ) has been 5% since it was imposed. I moved to Mexico a couple of years ago, and it was a shock to see a VAT of 15%, not enough apparently, since it has been increased to 16% .

I am curious to know ware are the VATs around the word.

Thanks
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Vega9000
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 12:00 am

Well, here in Portugal it's 20%  Wow! , and is actually down from 21 two years ago.

Someone's got to pay for all the government workers, I guess  Angry
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janmnastami
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 1:27 am

In Italy, there are three different rates: 4% (for basic items, such as food, newspapers), 10% (restaurants, hotels) and 20%.
 
LAXintl
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 1:38 am

A VAT list I have from April 2008 list following high ones:

Denmark - 25%
Norway - 25%
Sweden - 25%
Hungary - 25%
Iceland - 24.5%
Croatia - 23%
Finland - 22%
Poland - 22%

Back in here in California its a mix of State and local rates which has the rate between 8.35-10.75% depending on which county you live or shop in. Residents recently voted on a temporary 0.50-1.00% increase for 3 years to cover various projects such as transportation.
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janmnastami
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 2:00 am

 
ajd1992
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 2:25 am

The UK was at 15% last year to try and stimulate the economy after being at 17.5% for years but shops just raised the prices so you still paid the same but the shop got the difference, not Mr. Brown.

As of January the 1st, 2010, it was raised up to 17.5% again.
 
ltbewr
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 3:00 am

In the USA, we do not have a 'VAT' tax. Instead states and local governments have what we call 'sales taxes'. The rules vary as to the % imposed, usually from 3% to about 9% in some states and regions and on what put on and so on. A few states have no sales taxes, or only have it for a few items (like hotel fees, resturant bills).

In my home state of New Jersey, it is generally 7%, although in some cities to similuate revenue to them, it is 3.5%. If someone is buying something for resale, there is no sales tax, instead the final seller charges it. It is not put on most groceries, basic paper products, but can be on snack foods, soda. We do not have a sales tax on clothing or shoes. Everytime a car is sold, unless to another dealer, then sales tax applies (at the 7% rate). Sales tax is added to the price of all alcoholic beverages on top of other voulme taxes. There is no sales tax on motor fuels, as already taxed by volume.
 
lincoln
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 4:21 am



Quoting LTBEWR (Reply 6):
In the USA, we do not have a 'VAT' tax. Instead states and local governments have what we call 'sales taxes'. The rules vary as to the % imposed, usually from 3% to about 9% in some states and regions and on what put on and so on. A few states have no sales taxes, or only have it for a few items (like hotel fees, resturant bills).

And there are "sales taxes" for specific purchases -- for example, some of my hotel stays not only get charged "sales tax" but also up to three levels of "occupancy" or "lodging" tax (state, county, local) ... and in some cases there's an additional "tourism fee" (usually a flat rate per night like $2 instead of a percentage).

I'll admit that the VAT has always slightly confused me, mainly because I've never had a reason to really care about it having not left the US for any meaningful period of timem but my understanding is unlike the multitude of state/local taxes that one can find in the US which are generally -- though not always -- added to the "sticker" price at checkout, VAT is generally included in the "sticker" price-- that seems much more upfront to me.

Lincoln
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Elite
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 8:06 am

A big fat 0%  Smile

filler
filler
 
JJJ
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 8:12 am



Quoting Janmnastami (Reply 2):
In Italy, there are three different rates: 4% (for basic items, such as food, newspapers), 10% (restaurants, hotels) and 20%.

Pretty much the same here, but the rates are 16% - 7% - 4%

There are plans to raise the std rate to 18%, though.
 
bill142
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 8:19 am

We have a 10% GST on most items.
 
757MDE
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 12:23 pm

16% for most things.
10% for a few others.

A very little select group of things exempt.
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airtrainer
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 12:36 pm

It's 21% here in Belgium, and much more on incomes  banghead 
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plateman
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 12:44 pm

New York City is 8.875% on most items.

4% goes to New York State, 4.5% to the city, and 0.375% to the MTA, who I'm sure what they do with it and their other surcharges.

Long Island is a little lower.

Brian
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andz
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 1:19 pm



Quoting Lincoln (Reply 7):
VAT has always slightly confused me

We used to have a general sales tax but it was open to abuse because only the last person in the chain, ie the retailer charged tax.

With VAT as the name implies, there is tax on the added value. If you produce a raw material for 100 and the VAT rate is 15%, your customer pays 115. He uses the raw material to produce something else and charges 200, plus 30 VAT, selling for 230. And so on.

Here in South Africa the VAT rate has been 14% for a long long time.

Certain items are zero-rated:
Brown bread
Rice
Maize meal
Vegetables
Samp
Fruit
Mealie rice
Vegetable oil
Dried mealies
Milk
Dried beans
Cultured milk
Lentils
Brown wheaten meal
Pilchards/sardinella in tins
Eggs
Milk powder
Edible legumes and pulses of leguminous plants
Dairy powder blend
Exports
Non-fee related financial services
Educational services provided by an approved educational institution
Illuminating paraffin
Residential rental accommodation
Goods which are subject to the fuel levy (petrol and diesel)
Public road and rail transport
International transport services
Farming inputs
Sales of going concerns
Certain grants by government.
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oly720man
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 1:56 pm



Quoting Andz (Reply 14):
Certain items are zero-rated:

Zero rating led to an interesting legal case in the UK

http://en.wikipedia.org/wiki/Jaffa_Cakes#Cake_or_biscuit.3F

Under UK law, no Value Added Tax (VAT) is charged on biscuits and cakes — they are "zero rated". Chocolate covered biscuits, however, are subject to VAT, currently 17.5%. McVities classed its Jaffa Cakes as cakes, but in 1991, this was challenged by Her Majesty's Customs and Excise and the case ended up before the courts.

McVities evenually won the law case, so no VAT.
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offloaded
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 3:01 pm

There is no VAT in Gibraltar.
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CM767
Topic Author
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 4:08 pm

Thanks for the responses,

In the case of Panama I forgot to add that the ITBM is now ITBMS, (Impuesto de Transferencia de Bienes Muebles y Servicios) Basically services are going to be taxed, it remains at 5%.

At Panama, there is no VAT for food and medicines, and some school items are not taxed either at least for part of the year. I see now that we in Panama, are "spoiled" by our low VAT.

I started the topic, because for a lot of people the increase of the VAT on Mexico, while on a recession, does not makes sense, and could affect the economy even more.
But The Best Thing God Has Created Is A New Day
 
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TheRedBaron
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 8:47 pm

We are being governed by dolts, they have done exactly the opposite, the main goal is to keep inflation low, at the cost of EVERYTHING ELSE.

Now I am Charging 16% Vat, but the money coming from the USA is at 2005 levels, the Auto Industry is at 2001 Levels and the Tax revenue is down 15%, I wonder what they will come up with when there is no economy left to lot.

REgards TRB
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MD11junkie
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RE: Value Added Tax On Your Country Or State

Mon Jan 04, 2010 8:52 pm

Ok, so here's for Argentina:

IVA (Impuesto al Valor Agregado) or VAT
Computers, Printers and Other Electronic Appliances: 10.5% (cell phones not included)
Cell Phones: 17.5%
Food, Clothing, Cars, Air Travel/Tourism, Internet: 21%
Cell phone and phone bills: 27%

Saludos,
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AM744
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RE: Value Added Tax On Your Country Or State

Tue Jan 05, 2010 5:04 pm



Quoting CM767 (Thread starter):
I moved to Mexico a couple of years ago, and it was a shock to see a VAT of 15%, not enough apparently, since it has been increased to 16% .

It needs to be said that raw food and medication are exempt, although not for long I'm afraid... And with the underground economy at an estimated 50% GDP, we consistent tax payers get royaly screw*d.
 
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LTU932
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RE: Value Added Tax On Your Country Or State

Tue Jan 05, 2010 5:09 pm

Costa Rica has a sales tax of 13% on most items. In Germany however, the VAT used to be 15% but a few years ago, it was increased to 19%.
 
FriendlySkies
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RE: Value Added Tax On Your Country Or State

Tue Jan 05, 2010 9:13 pm

Cook county is now up to 10% sales tax...agh! I don't know whether VAT or the US system is better, I just wish the US sales taxes were included in posted prices...it's so much easier buying things overseas knowing exactly what I'll owe at the register, rather than trying to figure out if I have enough cash without knowing what the local taxes are in certain US counties...
 
ACDC8
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RE: Value Added Tax On Your Country Or State

Tue Jan 05, 2010 9:34 pm

In Canada, we've traditionally only had one Provincial Sales Tax (PST) which varies from Province to Province and since 1991 a Federal Goods and Services Tax (GST) which supposedly replaced the Federal Manufacturers Sales Tax (MST).

British Columbia has a 7% PST and is on everything excluding some items such as food and childrens clothes and school supplies. On top of that, we have the 5% GST which also adds to the 7% GST on some items but is also exempt for some things such as groceries.

As of July this year, BC will be planning to replace both taxes with a Harmonized Sales Tax (HST) of 12% and it will also be added to items that were previoulsy exempt.

Quoting LAXintl (Reply 3):
A VAT list I have from April 2008 list following high ones:

Denmark - 25%
Norway - 25%
Sweden - 25%
Hungary - 25%
Iceland - 24.5%
Croatia - 23%
Finland - 22%
Poland - 22%

Having lived in Germany (19% currently) for so many years, I love it when people here in Canada complain about how much in taxes they have to pay  Silly
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SpinalTap
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RE: Value Added Tax On Your Country Or State

Tue Jan 05, 2010 9:40 pm

New Zealand has a 12.5 % GST (Goods and services tax) on everything (no exceptions for any class of food). The government is currently undertaking a review of the tax mix and there is a chance that the rate may be increased in favour of decreasing personal income tax.
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jetstar
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RE: Value Added Tax On Your Country Or State

Tue Jan 05, 2010 11:05 pm

Connecticut is 6% statewide with no county or local municipal sales taxes.

Food from grocery stores is tax exempt as is all clothing under $50.00 for each item, for clothing over $50.00, sales tax is added for the entire amount.

Looking at my last grocery bill, the total was $140.27 and the total sales tax was .21 cents, for cat litter.

JetStar

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