At least 11 people on this blog have promised to explain to readers what VAT is and why it is not a barrier to trace. However, I realized that it’s not clear how to explain it all in a blog post and decided to do Artble instead for regulations. This article is close to 6,000 words and features detailed non-nunical illustrations. The fall issue of the magazine stated, “VAT is not a disguised trade barrier.” There are no gates and it is also intended for PDF format.
VAT is a sales tax similar to the sales tax, which is billed to the final domestic consumer from a particular area. This differs from the regular Salares tax in that it is collected from the company at each stage where value is added along the production chain. However, it is a sales tax and does not carry a net burden on the business (excluding heat of regulatory costs). The paragraph in my article summarizes how VAT works.
As seen in the discussion above and Table 1, the company does not pay VAT online, the last producer gives the answer, each business sends a VAT check to tax authorities for its own value-added value (20% in illustration) and price its own value-added value, but refunds the compensation amount from the business at each stage of production, at each stage of production…
The most important lesson to draw from an article may be the conclusion.
VAT is equivalent to domestic retail sales taxes that are not intended (and cannot) be charged to foreigners. Customs duties are also consumption tax, but this discriminates against the product. VAT does not distinguish between imported goods and domestically produced goods and does not hit inputs. The typical “boundary adjustment” of VAT counts is intended earlier to keep this tax non-discriminatory. They are simply applied to import the same tax collection mechanism that applies to the good produced domestically. …
So why do protectionists declare a counterargument? Why did the current Amarnal administration of Presidential Government make more than its precedent, publicly declare a false claim that professed proof on the topic? The explanation for charity is that politicians do not understand how VAT works. But why does the White House report or consult with economists who can explain what is going on? A less charitable explanation is to summon the intuition of comfortable politicians, and to condolence the nationalist passion of voters and the intuition of politicians that trade should not be left to the individual freedoms of importers and exporters.
Finally, although the US is the only country with the OECD without VAT, I have not argued that the federal government should impose on American consumers. Explain your position in the article.
