3 ms·

I'm sorry, but could you provide link, where stated, VATs applied to import? - As I know, usually VAT deducted from exported goods, but I really don't know how

by simne 2y ago

I'm sorry, but could you provide link, where stated, VATs applied to import? - As I know, usually VAT deducted from exported goods, but I really don't know how VAT work with import - usually on import used tariffs.

g-b-r 2y ago
The VAT is applied at the time of sale to the end consumer, it's irrelevant if the product is imported or manufactured locally.
- xp84 2y ago
  So strange to take VAT into account when it's not discriminating between local or import. By that logic the US has a 5-10% tariff on everything too since we have sales tax in like 47 states.
  - bitshiftfaced 2y ago
    The thinking may be that the asymmetry in taxes itself cause a trade imbalance. What can the country do with the extra tax money they receive compared to the lower tax country? They can spend it to fund infrastructure, goods, and jobs inside their own borders.
    - xp84 2y ago
      Ok. Taking this argument completely in good faith, does it follow that they think no country should be allowed to have any sales tax? Or that it’s an act of economic oppression for any country to have a higher sales tax than our country does? I’m just confused, do they propose every country should abolish all their sales taxes to appease this strange and pretty novel point of view. I feel like Trump or whoever is running this import tax show has lost the plot on what they’re trying to accomplish.
      - g-b-r 2y ago
        Well, in the end actually nothing else than the trade differences were considered, anyhow: https://xcancel.com/JamesSurowiecki/status/1907559189234196942 https://xcancel.com/JamesSurowiecki/status/19075591892341969...
      - bitshiftfaced 2y ago
        I don't know if anyone's necessarily saying that. I think it's a matter of "if tax differences cause trade imbalances, then increasing tariffs by the other side is basically a fair response, since it is also a tax."
    - g-b-r 2y ago
      Which are paid by the country's citizens
      - bitshiftfaced 2y ago
        As are tariffs.
        g-b-r 2y ago
        Yes, but tariffs are not paid on local products, of course, and create a real asymmetry in favour of the local products (of course).
        bitshiftfaced 2y ago
        Yes, we're on the same page I think. For context, this thread was originally about to what extent VAT is comparable to tariffs. For example, say country A has a end-consumer tax of 20% and country B has one of 10%, and neither has tariffs or other trade barriers. On the surface, we might expect country B to have a trade surplus due to having comparatively cheaper exports. But what if they instead they have a deficit? Country A is less dependent on B than the other way around, and they are able to enrich their country with the extra tax revenue. Maybe they even use this tax revenue to invest or incentivize what's needed to become even less dependant on country B. Now suppose country B increases their tariff until the trade balance is zero. In this scenario, all country B is really doing is increasing their own tax revenue to match that of country A.
AnAfrican 2y ago
https://vatdesk.eu/en/import-export-and-vat/#:~:text=of%20VAT%20rules.-,Is%20VAT%20due%20on%20the%20import%20of%20goods%20into%20Europe,are%20considered%20to%20be%20imported. https://vatdesk.eu/en/import-export-and-vat/#:~:text=of%20VA... >Yes, imports of goods are subject to VAT, with taxation taking place when the goods clear through customs.

by simne 2y ago

g-b-r 2y ago

The VAT is applied at the time of sale to the end consumer, it's irrelevant if the product is imported or manufactured locally.

xp84 2y ago
So strange to take VAT into account when it's not discriminating between local or import. By that logic the US has a 5-10% tariff on everything too since we have sales tax in like 47 states.
- bitshiftfaced 2y ago
  The thinking may be that the asymmetry in taxes itself cause a trade imbalance. What can the country do with the extra tax money they receive compared to the lower tax country? They can spend it to fund infrastructure, goods, and jobs inside their own borders.
  - xp84 2y ago
    Ok. Taking this argument completely in good faith, does it follow that they think no country should be allowed to have any sales tax? Or that it’s an act of economic oppression for any country to have a higher sales tax than our country does? I’m just confused, do they propose every country should abolish all their sales taxes to appease this strange and pretty novel point of view. I feel like Trump or whoever is running this import tax show has lost the plot on what they’re trying to accomplish.
    - g-b-r 2y ago
      Well, in the end actually nothing else than the trade differences were considered, anyhow: https://xcancel.com/JamesSurowiecki/status/1907559189234196942 https://xcancel.com/JamesSurowiecki/status/19075591892341969...
    - bitshiftfaced 2y ago
      I don't know if anyone's necessarily saying that. I think it's a matter of "if tax differences cause trade imbalances, then increasing tariffs by the other side is basically a fair response, since it is also a tax."
  - g-b-r 2y ago
    Which are paid by the country's citizens
    - bitshiftfaced 2y ago
      As are tariffs.
      - g-b-r 2y ago
        Yes, but tariffs are not paid on local products, of course, and create a real asymmetry in favour of the local products (of course).
        bitshiftfaced 2y ago
        Yes, we're on the same page I think. For context, this thread was originally about to what extent VAT is comparable to tariffs. For example, say country A has a end-consumer tax of 20% and country B has one of 10%, and neither has tariffs or other trade barriers. On the surface, we might expect country B to have a trade surplus due to having comparatively cheaper exports. But what if they instead they have a deficit? Country A is less dependent on B than the other way around, and they are able to enrich their country with the extra tax revenue. Maybe they even use this tax revenue to invest or incentivize what's needed to become even less dependant on country B. Now suppose country B increases their tariff until the trade balance is zero. In this scenario, all country B is really doing is increasing their own tax revenue to match that of country A.

AnAfrican 2y ago

https://vatdesk.eu/en/import-export-and-vat/#:~:text=of%20VAT%20rules.-,Is%20VAT%20due%20on%20the%20import%20of%20goods%20into%20Europe,are%20considered%20to%20be%20imported. https://vatdesk.eu/en/import-export-and-vat/#:~:text=of%20VA... >Yes, imports of goods are subject to VAT, with taxation taking place when the goods clear through customs.