VAT cut to 8%!!!

JasonLVC

MrRee wrote: »

The European Community is about to tear up the VAT Agreement - with all countries agreeing to it.

To "tear up" such an agreement would require unanimous approval from the 27 member states as well as the cancellation of the on-going review of EU VAT Simplification which is tied into the 2015 deadline agreement which is looking at harmonising VAT and other taxes across Europe.

Perhaps you would care to share your 'source' for this groundbreaking EU-wide agreement? The last ECONFIN meeting was in May where they agreed to push forward with the VAT simplification Implementation programme.

chewmylegoff

nicko33 wrote: »

Show your working

wow, mr ree, can't even do basic maths. that is a surprise, as i would have thought a grasp of maths would be pretty fundamental for nuclear physics / rocket science / whatever it is he claims he does this week.

MrRee_2

nicko33 wrote: »

Show your working

£30,000 car Base Price

VAT at 20% = £6,000

Car = £36,000

£30,000 car Base Price

VAT at 8% = £2,400

£6,000 - £2400 = Saving

Saving = £3,600

Correct? Or do I have to go back to school?

edgex

people only spend more if theyve got more money to start with

if they cant afford an item with the current rate of vat, they are unlikely to be able to afford it with a reduced rate in place

those that can afford the item anyway, a reduction wouldnt lead to increased purchasing, theres only so many tv's, cars etc anyone can buy. they might move up the range, but even then the vat take would simply be back at the level you started at.
those that cant afford the items now, the vast majority of their spending is on essentials, which are either exempt, zero rated, or reduced rate, eg food, utilities etc. that spending is not movable to big ticket items.


the only way to get people spending more is to ensure they actually have more money to start with, before they go out to spend it.
thats what raising the income tax threshold does.

MrRee_2

Well, I'm thinking of a £15,000 purchase at the moment - certainly a drop in VAT WOULD just push me into signing ...... it is a luxury item anyway and doesn't 'need' to be bought.

The-Joker

:T

MrRee wrote: »

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OK, I have jumped the gun a bit .....

............................................ but, I can see it coming very soon.

It is the single thing which will get the economy moviing and get people spending.

That £30,000 car will now be £3,600 cheaper!

Makes sense ... and, mark my words, it is about to happen - do NOT buy anything big yet!!

Apart from you telling everyone not buy anything and wait for something that will never come, yeah that will really help the crisis.

It would be good news for silver though, get a lot more people buying silver bullion instead of gold.

chewmylegoff

MrRee wrote: »

Well, I'm thinking of a £15,000 purchase at the moment - certainly a drop in VAT WOULD just push me into signing ...... it is a luxury item anyway and doesn't 'need' to be bought.

please tell me it is a cryogenic freezer for you to be stored in.

MonkeyMad

MrRee wrote: »

£30,000 car Base Price

VAT at 20% = £6,000

Car = £36,000

£30,000 car Base Price

VAT at 8% = £2,400

£6,000 - £2400 = Saving

Saving = £3,600

Correct? Or do I have to go back to school?

Thought it was a £30K car; looks to me like a £36K car? Todays £30K car would cost £27K if VAT were 8%

Out,_Vile_Jelly

MrRee wrote: »

Well, I'm thinking of a £15,000 purchase at the moment - certainly a drop in VAT WOULD just push me into signing ...... it is a luxury item anyway and doesn't 'need' to be bought.

Oh come on, you can earn £15k in a couple of days on your rate. What are you dithering for?

Pocketsaver

MonkeyMad wrote: »

Thought it was a £30K car; looks to me like a £36K car? Todays £30K car would cost £27K if VAT were 8%

I don't know how to work out VAT cut, so forgive me if I appear stupid in this post.:o
To work out the savings from a VAT cut to 8% from 20% would it simply be a case of:

£30,000/ 120 (100 being the base value, 20 the VAT) x 108 (100 is base value, 8 is the new VAT rate) = £27,000?

Is there another way to work it out?