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| ▲ | kps 4 hours ago | parent | next [-] | | No duty, only VAT. https://www.trade-tariff.service.gov.uk/commodities/84717050... | | |
| ▲ | somat 2 hours ago | parent [-] | | Now I am curious, Understand that I am from the states, and consequently have zero intuition as to what a VAT is. But... the hard drive importer is directly using the HDDs and as such is not adding any value to the item, why are they paying a value added tax? If I had to guess it is probably on the value that could have been added to the item. | | |
| ▲ | ornornor an hour ago | parent | next [-] | | It’s just the name for sales tax. Why is there a tax on sales, isn’t a sale a discount? Then is the sales tax negative because it’s the tax on the difference between the full price and the discounted price? You’d probably end up with a refund for buying the thing, unless your state has no sales tax. | | |
| ▲ | abujazar 36 minutes ago | parent [-] | | Sales tax is actually very different beacuse it is usually either cumulative and added to each part of the chain, or only the last one; whereas VAT is deducted in all but the last part of the chain. |
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| ▲ | abujazar 39 minutes ago | parent | prev [-] | | Yea, the idea is that the VAT effectively taxes the added value in each step of the value chain because there's a limit to how much you can charge for an item or service. E. g. a 25 % VAT does not necessarily mean the goods become 25 % more expensive; most of those 25 % would have been profit for the reseller, intermediates and manufacturer if it were not for the VAT. Perhaps a little contra-intuitively, a high VAT keeps prices down and business efficient because every intemediate is indirectly taxed even though the VAT is only charged to the final consumer. |
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| ▲ | abetancort 4 hours ago | parent | prev [-] | | [dead] |
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