Yes the minimum standard rate is 15% plus lower rates for certain items - note that few countries are at 15%
However, before VAT, the Uk had Purchase Tax which VAT replaced
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In the latest episode of the United Hour Podcast, Nik (@Rood) is joined by CEO Duncan Drasdo and Financial Director Andy Green from the Manchester United Supporters Trust for a special episode on all things behind the scenes at Old Trafford including a brief history of MUST and their aims today, views on INEOS and Sir Jim Ratcliffe so far, and the Old Trafford regeneration.
Yes the minimum standard rate is 15% plus lower rates for certain items - note that few countries are at 15%
However, before VAT, the Uk had Purchase Tax which VAT replaced
And prior to the EU Referendum, a new VAT rate for children's clothing was being contemplated.
Luxembourg always used to have the lowest VAT rate. - 15%.
If they could have, they would definitely have reduced this VAT rate for much of this time. They are positioned between France, Germany, Belgium, Netherlands, are a tiny country and live off attracting businesses
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The Uk rate if I remember was 17.5% and Luxembourg 15%
Income from VAT for the UK last year was around £117bn - if the UK leave the EU what plans do the UK have for VAT
And there is a minimum because we are in a single market.
UK was historically at 17.5% but Brown temporarily lowered it to 15% after the recession.
Yes, I think it was 10% when it was first introduced.
Question is do the UK want the single market or not - if they do they have to comply by the rules but they can reduce it to 15% now - problem is they would lose a quarter of the £117bn revenue - unless of course the people will have more money and go on a spending spree
No work is getting in the way of my thinking
Blink and you might have missed it. But it was 15%
http://www.tradingeconomics.com/united-kingdom/sales-tax-rate
https://www.nealandassociates.co.uk/2011/03/10/historic-uk-vat-rates/
My mistake, but that's currently authorized, so what is the problem?
And once again, you are in a single market. If you don't want to be in a single market then there is no problem and no debate, you leave the EU and don't try strike a deal to be a member of the single market without FOM or respect of common nomenclature and economic rules.
You are getting excited. The world pretty fecked right now. China are saying they would step in for the USA in TTP, hypothetically the UK could get involved. All bets are off at the moment.
Hey I'm for the single market! I think their should be a minimum corporation tax rate, a minimum VAT rate. I think the EU should take the first 10% of the EU citizens income tax (although I also agree with the personal allowance, so not sure how that works).
I don't have a problem.
But originally, I was replying to Paul who said that VAT, corporation tax, etc was **nothing** to do with the EU. And I said, well, they are **a bit** to do with the EU
I assure you that I am not. I am only being realistic.
TPP is in the pacific, TTIP is its European version. Neither of them are liked by Trump.
Also Good luck dealing with China especially after putting doubts on their integrity. Not to forget that China is a big bully. They will expect you to open your market wide to their product but would want concessions on their side of the deal (that's what they did with the Swiss). With the UK showing its back to Europe and with the US being lead by a populist whose a big fan of protectionism its the worse time in history to be a small fish whom no one really likes.
The UK should really consider allowing the US to take control. Who knows maybe Trump will put in a good word to allow you to enter into a new, heavily US oriented NAFTA. OK May will probably be a facade and the one really ruling would be Farage, who'll be so grateful at Trump to allow him to do anything he wants. Alternatively the UK should slide into the EEA. I doubt it will be able to keep the xenophobic lot happy with that though.
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Ok I'll concede it has a bit to do with it but as no EU country is at the 15% minimum and VAT (or equivalent) is present in most countries of the world - not a lot
Yeah but the debate was about who makes the rate not if there are rules. Obviously there are rules since the EU is an organized market and these rules have been agreed by all the members but Brussels doesn't decide which rate you will apply.
Edit: If the debate was about whether the EU have a framework then we are all morons to even try to debate about that.
Yeah, it's been a lot of debate over nothing. Nothing!
TPP, - not unless the Uk has moved to the Pacific
Doh!
Point still stands though. Western politics are up in the air at the moment. Anything can happen so I don't take much notice of 'the UK is the back of the queue'. Who is listening to Obama now?
Doh!
Point still stands though. Western politics are up in the air at the moment. Anything can happen so I don't take much notice of 'the UK is the back of the queue'. Who is listening to Obama now?
you have to admit that things doesn't look good though. The EU seem to be united, at least in terms of Brexit. Canada had clearly stated that the EU will be given priority over the UK. India had been quite hostile and Trump is not exactly a big fan of free trade deals.
Things look bloody awful! Donald Trump is president and is trying to get Nigel Farage working for our government!!
Relatively we are in a period of political chaos so I have no clue how it will turn out. Trump getting in to power is a good thing for the UK, purely on a trade deal basis I believe.
I disagree. Trump hates free trade agreements. He wants to eliminate TPP and any further talks about TTIP and he had already called for reforms to the NAFTA agreement to make them more US friendly. The guy is the typical US ruthless business shark. Any deal would probably be a poisonous chalice, heavily staked towards the US.
Clinton might have talked big but ultimately she would want the UK support over Syria. Trump can't care less. He's already agressively pushing the UK to the edge with Farage's appointment and you haven't yet asked anything from him yet.
Ripping up TTP puts the other countries involved at a loose end and opens up possibilities for bilateral deals to be made, or perhaps something with other Anglosphere nations?
It will be easier for Trump to sell a narrow, bilateral trade deal with a nation of comparable economic development, than a far reaching multinational monster like TTIP. Sure, neither may arise, but the chances of the former occurring are greater.
I don't think so. The EU doesn't need TTP and tbf, its a sign of relief for the EU as that means that they will not be blamed for its dismissal. Trump provides the federalists more fuel to push their agenda through. They will argue that Europe can't rely on outsiders as they may change stance at any time. The UK will be seen as an outsider too.
Doh!
Point still stands though. Western politics are up in the air at the moment. Anything can happen so I don't take much notice of 'the UK is the back of the queue'. Who is listening to Obama now?
True, anything could happen at the moment; the West is too unstable politically, the East and the Russians must be having a good old laugh
On first thought Trump getting in may have been good for the UK - on second thoughts, possibly not
The special USA/UK relationship exists from one perspective - from the UK, not necessarily the other way round
However is that what the UK need? Trump is a business shark who knows that the US hold all the cards in its hands. It doesn't need the UK to prosper but a trade deal with it will be some sort of act of solidarity towards a historic ally. Some kind of an act of charity towards a friend in need.
Of course, the UK will have to dance to his tunes and accept what he's ready to give. Beggars can't be choosers right? (Im using Trump's way of thinking here so don't crucify me)
Sounds like the EU is going to turn all insular and closed minded. Say it ain't so...
But they don't want bilateral deals, the all point of these agreements is to create/access huge markets.
Edit: I don't know the country but from a size standpoint Indonesia is a better fit than the UK.
Sounds like the EU is going to turn all insular and closed minded. Say it ain't so...
The Western world is going insular. UK, US.
I think the EU will follow the lead, at least, until Storm Donald passes. It will focus on an EU military programme just in case Mr Putin invades and will try to repair the numerous weaknesses within the EU structure. The UK will become the perfect example of what happens to a country who leaves the EU, so I doubt that there will be plenty of appeasement on that part.
China might take this opportunity to increase its status within the globalized world. A China-EU TPP sort of deal might be enough to steal Europe from the US.
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Not when those minimums potentially inflate prices for the poorest on society. But the EU's actions on austerity rather speak for themselves i would suggest.
Those minimums finance the state and partially allow people to not mortgage their housing in order to pay hospital bills.
That's just how every government works. The USA sets minimum and maximum for each state to implement. The UK is setting a minimum for Scotland when it gets its own tax powers.
The EU is just a government. 15% minimum stops someone like Luxembourg drooping their tax to something stupid and undercutting everyone else
If a British government wished to have a 0% rate for utilities to ease the plight of customers, why should it be prevented from doing so? The same could soon apply to children's clothing.
Surely they'd have the flying pig issue to contend with first?
Because you are member of a single market, in such markets the VAT is paid once. Companies could easily sell their goods through the UK and completely dodge the VAT.
Because we made an agreement with the other 27 countries that we would abide by a fixed set of rules, including having a minimum VAT level on most products. There are rules that we don't like. There are rules that Germany doesn't like. There are rules that France doesn't like. We all have to deal with it like grown ups.
Now if the UK went to the other 27 countries and said "listen guys, I need help. Can you allow us to put 0% vat on utilities"? And they said "sure thing my good friend United Kingdom. Let's get that sorted for you". Then the 27 countries and the UK could make an exception.
Unfortunately our relationship with the EU27 is basically in the mud, and visa versa.
It would be hard for household gas/electricity to do that which I think is why Nick chose that example, but yes.
According to the rates I posted, UK VAT on Water is 0% and gas and electricity 5% - lowest in the EU
Yeah that's true I was in a more general POV. But if you limit it to utilities, there is still a financing problem most of these things are heavily financed by the states, who is going to pay the bill?