3 ms·

I am not a lawyer. But I think you would pay custom duty of 25% on the pc. It even worse, because your 1000 USD pc is now not a 1000 USD pc, but a 1250 USD pc b

by runarb 13y ago

I am not a lawyer. But I think you would pay custom duty of 25% on the pc. It even worse, because your 1000 USD pc is now not a 1000 USD pc, but a 1250 USD pc because that is what you paid for it. I believe it would go something like this: * You want to barter for a 1000 USD pc located in the US and pay 1000 USD worth of gold. * In Norway you then pay 1250 USD for that weight in gold (1000 USD for the gold, 250 USD in vat) and send it to the US. * The pc is sent to you, but is now worth 1250 USD because that was what you paid for it, so you pay an additional 312 (25%) in custom duty. * Making your 1000 USD pc costing you 1562 USD. So bartering with assets like gold and now BitCoin may not be a good idea as a private citizen. Companies of course are exempt from vat, so other rules apply.

3825 13y ago
> Companies of course are exempt from vat, so other rules apply. If a company buys a 1000 USD computer to sell it, then the ultimate buyer pays the VAT. However, what happens when a company buys a 1000 USD computer to replace a server rack? At what point does "consumption" happen?
- deleted 13y ago
  [deleted]
- runarb 13y ago
  Only private citizen pays vat. In practice it works so that everyone, both private citizen and company’s pays the vat, but companies can fill out a form and get the vat returned if the product was for internal use. They then add vat to their end product. For example: * A company buys a 1000 USD server and pays 1250 USD (server + vat). It sells it to a private citizen for 1250 USD (no profit). It can then keep 1000 USD and must give 250 USD to the state. * A company buys a 1000 USD server and pays 1250 USD (server + vat). It sets it in a rack for internal use, and can then ask for the 250 USD vat back from the state.
- e12e 13y ago
  VAT is a tax on "value added". So a (VAT registred) company only needs to pay VAT on the value it provides. Eg: you sell services for 1M NOK/year, you then have to claim VAT from your customers, totalling 250K NOK. But, you also pay for hosting, hardware etc, for say a total of 300K NOK -- so you subtract the VAT on that 300K (7.5K NOK) from the VAT you have to pay the government, and pay 250K - 7.5 K in VA tax. (In reality you might do a lot of these deals b2b, and not actually transfer/invoice the VAT -- but that's the basic idea). Oh, yeah, also not a lawyer, but a Norwegian.

by runarb 13y ago

3825 13y ago

> Companies of course are exempt from vat, so other rules apply. If a company buys a 1000 USD computer to sell it, then the ultimate buyer pays the VAT. However, what happens when a company buys a 1000 USD computer to replace a server rack? At what point does "consumption" happen?

deleted 13y ago
[deleted]
runarb 13y ago
Only private citizen pays vat. In practice it works so that everyone, both private citizen and company’s pays the vat, but companies can fill out a form and get the vat returned if the product was for internal use. They then add vat to their end product. For example: * A company buys a 1000 USD server and pays 1250 USD (server + vat). It sells it to a private citizen for 1250 USD (no profit). It can then keep 1000 USD and must give 250 USD to the state. * A company buys a 1000 USD server and pays 1250 USD (server + vat). It sets it in a rack for internal use, and can then ask for the 250 USD vat back from the state.
e12e 13y ago
VAT is a tax on "value added". So a (VAT registred) company only needs to pay VAT on the value it provides. Eg: you sell services for 1M NOK/year, you then have to claim VAT from your customers, totalling 250K NOK. But, you also pay for hosting, hardware etc, for say a total of 300K NOK -- so you subtract the VAT on that 300K (7.5K NOK) from the VAT you have to pay the government, and pay 250K - 7.5 K in VA tax. (In reality you might do a lot of these deals b2b, and not actually transfer/invoice the VAT -- but that's the basic idea). Oh, yeah, also not a lawyer, but a Norwegian.