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Nice visualisation. But why is "VAT refunds" an income? And why is "Petroleum revenue tax" an expenditure? (2.2B, coming out at the top of the 241B "Taxes on in
by virgilp 7y ago
Nice visualisation. But why is "VAT refunds" an income? And why is "Petroleum revenue tax" an expenditure? (2.2B, coming out at the top of the 241B "Taxes on income and wealth")
- jon-wood 7y agoI can't say this with certainty, but my assumption here is that the UK government buys products and services from the EU, for which it then reclaims the VAT in the same way a business would. Petroleum revenue tax just sent me down a bit of a rabbit hole - according to https://www.gov.uk/guidance/oil-gas-and-mining-petroleum-revenue-tax https://www.gov.uk/guidance/oil-gas-and-mining-petroleum-rev... PRT is effectively zero rated for any field approved after March 1993, but because of government vagaries still exists as a concept. Given that I could entirely believe that it costs the government more to adminster the tax than they make in revenue from it.
- virgilp 7y agoYou're telling me that VAT refunds are greater than contribution to the EU? So basically UK has an immediate net loss from brexit?
- systemtest 7y agoIs this due to the VAT Reverse Charge that European companies can do when they sent each other invoices? So VAT is all regular VAT, and VAT refunds is VAT that would be collected by countries abroad but is now collected by the British government because of the VAT Reverse Charge.