S
sluice44
Guest
What is VAT?
I know it stands for Value Added Tax but what is it?? :\
I had a drunken conversation one time with a philosophy graduate and we got talking about taxes (as you do). Apparently taxes are morally ok to pay for hospitals and the roads etc etc.
As I understood it (at 2am in the morning), VAT is an EXTRA tax charged on luxury goods. The Govt does this to raise extra money for those who can afford to buy luxury and/or non-essential goods. A tax on the rich, if you will.
So why is VAT charged on almost everything such as ESB bills and books (my most recent gripes). And, in relation to hospitals, when the Govt announces €100M for this or that, they know they'll get 21% back straight away in VAT charges. VAT is not charged on food but, apparently, it's charged on the raw ingredients. How is food a 'luxury' item?
What does AAM think? How is it justified?
Sluice
I know it stands for Value Added Tax but what is it?? :\
I had a drunken conversation one time with a philosophy graduate and we got talking about taxes (as you do). Apparently taxes are morally ok to pay for hospitals and the roads etc etc.
As I understood it (at 2am in the morning), VAT is an EXTRA tax charged on luxury goods. The Govt does this to raise extra money for those who can afford to buy luxury and/or non-essential goods. A tax on the rich, if you will.
So why is VAT charged on almost everything such as ESB bills and books (my most recent gripes). And, in relation to hospitals, when the Govt announces €100M for this or that, they know they'll get 21% back straight away in VAT charges. VAT is not charged on food but, apparently, it's charged on the raw ingredients. How is food a 'luxury' item?
What does AAM think? How is it justified?
Sluice