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I am, my company isn't. What's your point? How would things get 21% more expensive from one day to another? The VAT system already functions and is already calc
by rad_gruchalski 5y ago
I am, my company isn't. What's your point? How would things get 21% more expensive from one day to another? The VAT system already functions and is already calculated into the cost of living. An example: selling a SaaS subscription in the EU, the price would be 100%-19% VAT + VAT, selling the same subscription to the US, the price would be 100%. Consumer in the EU does not lose anything. Business neither because the VAT the business pays back to the VAT system can be claimed back on VAT paid by the same business on other services.
The VAT thus motivates businesses to spend money on goods and services. What is it used for? "VAT essentially compensates for the shared service and infrastructure provided in a certain locality by a state and funded by its taxpayers that were used in the provision of that product or service." https://en.wikipedia.org/wiki/Value-added_tax https://en.wikipedia.org/wiki/Value-added_tax
- pvaldes 5y ago> How would things get 21% more expensive from one day to another? New Laws. Is more expensive because everybody is paying a 21% more in taxes. So either the customer pays more, or the seller accepts to take a cut in their benefits to keep the price in a strategic value (below the product of his competitors) To compensate it and survive, the startup needs now to find a way to produce the 'same' product 21% cheaper. For example, in China. That invariably leads to your product being cloned for somebody and fake products invading your market.
- rad_gruchalski 5y ago> New Laws. How did we end up on new laws when we started about VAT explicitly?
- pvaldes 5y agoMaybe you are not aware, but VAT has been raised many times in the last years.
- rad_gruchalski 5y agoLike any tax. In some cases, it was also lowered. Product groups move between VAT rates.