Haikus, Live From Socialist Europe

[Dreadnaught]

That's utter nonsense, VAT is less disruptive than any other tax. For most businesses it stays outside of cash flow alltogether. Only at the final point of sale that is different, and that also happens to be the point where the consumer actually provides the VAT due.

This should probably be a separate thread, but how does it stay out of cashflow? You're thinking about the net impact on revenues (excluding compliance costs), not the cashflow impact from VAT recovery and payments.

OR

Taxing every turn
Makes each turn more expensive
Despite the loopholes

[Khendraja'aro]

This should probably be a separate thread, but how does it stay out of cashflow? You're thinking about the net impact on revenues (excluding compliance costs), not the cashflow impact from VAT recovery and payments.

Last time I looked when I did some shopping at Metro (which is a German chain which sells food and related articles only to companies like restaurants, small food shops and the like) when you do some B2B shopping, VAT does not even apply in the first place. You simply don't pay VAT in those cases.

There are two ways to deal with VAT: You've got some kind of established (read: contract) business relationship - then VAT does not even enter the picture. Or you don't have such a pre-established contract, then you get the VAT back through tax-returns.

[GGT]

Ah, I forgot the GGT trope that I'm some kind of ungrateful cheap billionaire.

The same reason cheap-ass ramen noodles cost 400% more. VAT + other regulations/taxes reverberate down the whole production/distribution chain as added costs of business.

Transit costs + import duties (if any) + VAT + currency fluctuations would still probably muck it up. This is why I rage against VAT so much. It screws up cashflow and business operations so much that it raises costs.

Haiku Gentry whines
noodles, taxes, tariffs, all
thank your employer

[Aimless]

Haiku Gentry whines
noodles, taxes, tariffs, all
thank your employer

This is a preposterous allegation, Dreadnaught has never owned Palominos

[Hazir]

This should probably be a separate thread, but how does it stay out of cashflow? You're thinking about the net impact on revenues (excluding compliance costs), not the cashflow impact from VAT recovery and payments.

OR

Taxing every turn
Makes each turn more expensive
Despite the loopholes

Businesses don't pay the tax at all, as Khen points out, if they have paid it on any bill, they can deduct it from any VAT they collected before they pay the money due to the tax-office. It's also not really necessary to report on a transaction to transaction basis, it's enough to know what type of transaction it was (B2C or B2B) and how big that category was (turnover). It is a highly effective system of taxation. And what's better still, it doesn't punish working or enterprise.