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Reaching 90% is hard, even if you count additional taxes. Take Sweden, where you first remove 31.42% social tax, then 60% income tax, then 25% VAT. You will sti
by Strom 7y ago
Reaching 90% is hard, even if you count additional taxes. Take Sweden, where you first remove 31.42% social tax, then 60% income tax, then 25% VAT. You will still end up with 24% of money left of the initial payroll.
- NightlyDev 7y agoIf I make a sale in Norway for 100 NOK: Business VAT: 20 spent (20 %) 80 NOK left. Income tax: 39 spent (max ~49 %) 41 NOK left. VAT on purchase: 8.2 spent (20 %) 32.8 NOK left. 67.2 % taxes. If I spend my money on gas/diesel then I would have ~16 NOK of value left. (84 % taxes) About 18 % of the income tax I'll get back during my pension. So 90 % is probably achievable on some things in some countries.
- mmustapic 7y agoYou are not spending the first 20 NOK of your sale, you are just collecting them from the customer. If VAT was 0% then your sale would be for 80 NOK.
- NightlyDev 7y agoSure I am. If I didn't have to collect VAT then I could sell for 100 NOK instead. It's not my money, but I still have to bill for it and pay it. The customer doesn't get a better product or service because of it.
- sokoloff 7y agoIf the customer didn't pay the VAT, they'd end up paying their taxes some other way and still have less money to spend on your products.