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If 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
by NightlyDev 7y ago
If 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.