4 ms·

How is VAT paid? How is it accounted for when a business pays it's tax? Are taxes on revenue in the local currency due in the national currency? The only artic

by jknz 7y ago

How is VAT paid? How is it accounted for when a business pays it's tax? Are taxes on revenue in the local currency due in the national currency? The only article I could find (in French) suggests that payment in these local currencies bypass the French VAT. https://www.europe1.fr/economie/Les-monnaies-locales-c-est-l-avenir-936924 https://www.europe1.fr/economie/Les-monnaies-locales-c-est-l... It it lets local business circumvent VAT, it not surprising that they quickly become popular.

johnchristopher 7y ago
Where I live they bound the local currency to the Euro and 1lc=1euro so you trade in whatever you want but pay your taxes in Euro. So it means you better have faith in the local currency because if somehow the experience fails it'll be people, artisans and reseller who'll pay the tab. Although here I think there's something like "the group that printed the money keep euros and will trade it for 1 loc anytime". Since you seem to speak french, here's the faq/doc for my city's local currency http://www.mpcliege.be/assets/2c762a54-5ea1-4417-8b8c-9cfb2048e6fc/le-valheureux-dossier-de-presentation-octobre-2017.docx http://www.mpcliege.be/assets/2c762a54-5ea1-4417-8b8c-9cfb20...
sonnyblarney 7y ago
It's ridiculous that there are not clear and unambiguous financial artifacts on their site! I can gather from [1] (in French): + That is seems to be pegged 1:1 to the Euro And from [2] + That it may just be an 'alt format' - i.e. each 'Eusko' is backed by a Euro. Meaning this is really just about names and bill colours. It's de-facto just Euros. I don't gather there's a central bank or monetary policy persey, but I could be wrong, I would hope someone chimes in with answers. It might be 'liked' by the local business as a means to avoid transparency, would be a cynical take, but this is money, those are common money problems. There are all sorts of neat ramifications to this, but considerably more if it were truly it's own currency with central bank, policy and not pegged to the Euro. [1] http://www.euskalmoneta.org/comment_ca_marche/ http://www.euskalmoneta.org/comment_ca_marche/ [2] http://www.euskalmoneta.org/eusko_numerique/ http://www.euskalmoneta.org/eusko_numerique/
- weberc2 7y ago
  > Meaning this is really just about names and bill colours In other words, it’s about identity, not economics.
  - omosubi 7y ago
    Wasn't that the point all along? It's not like they were hiding it. They want french Basques to be proud of their heritage
    - weberc2 7y ago
      Absolutely. It’s clearly symbolic and not economic. That was the point of my comment. :)
- wrycoder 7y ago
  There’s a 5% tariff to convert to euros, so there is an incentive to trade with businesses that accept eusko, whenever economically feasible. That’s the whole point - to encourage local commerce.
- jacquesm 7y ago
  > It's de-facto just Euros. Not really, because you'll have a very tough time getting them to be accepted outside of the region.
  - sonnyblarney 7y ago
    Of course not, but my point is, there's no new monetary policy: this isn't some kind of fancy new currency. It's just monopoly money backed 1:1 with Euros, or rather 'pretty chits that are just Euros'. Obviously there are consequences ... but nobody is printing money, issuing credit/new debt. As someone mentioned above, with a 5% trade cost ... that's a lot. This is a very interesting experiment worth possibly repeating.
- tinus_hn 7y ago
  I’m not sure but it seems there are no bills anymore and you have to use a debit card. Quite dangerous because if there is any substantial amount of fraud the system collapses and all the ‘money’ is worthless.

by jknz 7y ago

johnchristopher 7y ago

Where I live they bound the local currency to the Euro and 1lc=1euro so you trade in whatever you want but pay your taxes in Euro. So it means you better have faith in the local currency because if somehow the experience fails it'll be people, artisans and reseller who'll pay the tab. Although here I think there's something like "the group that printed the money keep euros and will trade it for 1 loc anytime". Since you seem to speak french, here's the faq/doc for my city's local currency http://www.mpcliege.be/assets/2c762a54-5ea1-4417-8b8c-9cfb2048e6fc/le-valheureux-dossier-de-presentation-octobre-2017.docx http://www.mpcliege.be/assets/2c762a54-5ea1-4417-8b8c-9cfb20...

sonnyblarney 7y ago

It's ridiculous that there are not clear and unambiguous financial artifacts on their site! I can gather from [1] (in French): + That is seems to be pegged 1:1 to the Euro And from [2] + That it may just be an 'alt format' - i.e. each 'Eusko' is backed by a Euro. Meaning this is really just about names and bill colours. It's de-facto just Euros. I don't gather there's a central bank or monetary policy persey, but I could be wrong, I would hope someone chimes in with answers. It might be 'liked' by the local business as a means to avoid transparency, would be a cynical take, but this is money, those are common money problems. There are all sorts of neat ramifications to this, but considerably more if it were truly it's own currency with central bank, policy and not pegged to the Euro. [1] http://www.euskalmoneta.org/comment_ca_marche/ http://www.euskalmoneta.org/comment_ca_marche/ [2] http://www.euskalmoneta.org/eusko_numerique/ http://www.euskalmoneta.org/eusko_numerique/

weberc2 7y ago
> Meaning this is really just about names and bill colours In other words, it’s about identity, not economics.
- omosubi 7y ago
  Wasn't that the point all along? It's not like they were hiding it. They want french Basques to be proud of their heritage
  - weberc2 7y ago
    Absolutely. It’s clearly symbolic and not economic. That was the point of my comment. :)
wrycoder 7y ago
There’s a 5% tariff to convert to euros, so there is an incentive to trade with businesses that accept eusko, whenever economically feasible. That’s the whole point - to encourage local commerce.
jacquesm 7y ago
> It's de-facto just Euros. Not really, because you'll have a very tough time getting them to be accepted outside of the region.
- sonnyblarney 7y ago
  Of course not, but my point is, there's no new monetary policy: this isn't some kind of fancy new currency. It's just monopoly money backed 1:1 with Euros, or rather 'pretty chits that are just Euros'. Obviously there are consequences ... but nobody is printing money, issuing credit/new debt. As someone mentioned above, with a 5% trade cost ... that's a lot. This is a very interesting experiment worth possibly repeating.
tinus_hn 7y ago
I’m not sure but it seems there are no bills anymore and you have to use a debit card. Quite dangerous because if there is any substantial amount of fraud the system collapses and all the ‘money’ is worthless.