....seriously considered what a VAT would do to our businesses/hobbies. Since part of my woodworking hobby is acquiring tools and gadgets, things could get dicey.
....seriously considered what a VAT would do to our businesses/hobbies. Since part of my woodworking hobby is acquiring tools and gadgets, things could get dicey.
Gene
Life is too short for cheap tools
GH
I don't have a lot of knowledge about the application of VAT. What is your opinion of how it would affect our hobby? How does it differ from a sales tax?
Is AZ considering a VAT?
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"I love the smell of sawdust in the morning".
Robert Duval in "Apileachips Now". - almost.
Laserpro Spirit 60W laser, Corel X3
Missionfurnishings, Mitchell Andrus Studios, NC
To my knowledge, a VAT requires that something change the product, i.e.,
steel + Grizzly(value added) = Jointer.
Sales tax is strictly upon the sale of an item, regardless of an change in the product.
John Inc. buys jointer from manufacturer in China, slaps logo on it, sells to Jim in USA = Sales tax
Depending on how VAT is implemented, it could stack on top of existing sales taxes, further increasing costs to businesses and individuals.
I've heard rumors of a coming national VAT. Is this what you're speaking of? I can't comment lest I get into politics. But as a woodworker, or any other hobbyist, I wouldn't worry about it. I think it's just rumor.
No VAT. There is an election scheduled soon to approve/disapprove a 1 cent sales tax increase. It will automatically be repealed after 3 yrs. Supposed to go to public safety and education but, you know how that goes.
Gene
Life is too short for cheap tools
GH
As I understand things, a VAT isn't so very different from sales tax as we know it. The issue I have is when we pay both.
A VAT is an amount added at each step of the process to manufacture a product from beginning to end. If I build a set of cabinets I charge a tax for converting raw material into tangible personal property. I send those cabinets to Pat, and he adds a tax amount for the finishing process. The cabinets then go to Gene to have hardware installed and he adds another tax amount, and so on. In some VAT plans there is a method of recovery for taxes imposed by the previous vendor.
As an aside, in the past I have argued almost daily with people about the requirement in the state of Georgia to charge sales tax for stone countertops. Many people believe that fabricating countertops should be billed as labor; however, per GA tax code any raw material converted into tangible personal property must be taxed. Also, once those countertops are installed I cannot remove them for nonpayment.
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Bella Terra
The Wiki page on it is ...... not bad.
It has a lot of efficiencies - and when properly implemented reduces fraud -- and also loss through the cash economy.
The US system is unbelievably expensive and wasteful.
When filling out my state tax return I noticed there is an area where you are supposed to document all purchases from outside my state that are brought into and consumed in my state. I immediately went to my copious documentation of all my online woodworking and other purchases and provided a precise total so the state could recoup any lost potential sales tax revenue.
This thread is under close scrutiny by the Mods.
I 'll bet it won't be open much longer.
Politics are against the TOSs.
Just a friendly reminder and speculation.
Ken
So much to learn, so little time.....
I saw a VAT tax in europe back in 1983 @ 20% I heard of a person that bought a small retail business in the Netherlands and decided to put on sale some of the, non moving, merchandise that came with the business. Put up a sign for the sale and in a few days was visited by the government saying that reducing prices that much is not allowed. When the VAT tax is 20% the government is realy a partner! And they say niet when they want too. Even transporting and retailing an item adds value to it so may be then taxed.
No PHD, but I have a DD 214
I guess now that healthcare reform has been passed, VAT won't be far behind. Have to pay for it somehow.