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It can reclaim (subject to various rules) the VAT it pays, and so passes to the government the net VAT it collects (being output tax less input tax). In this way, a business acts as a tax collector on behalf of the government. Within the European Union, member states charge VAT at differing rates on goods as a form of indirect taxation. All ...
For this reason, a VAT is neutral with respect to the number of passages that there are between the producer and the final consumer. A VAT is an indirect tax, in that the tax is collected from someone other than the person who actually bears the cost of the tax (namely the seller rather than the consumer). To avoid double taxation on final ...
VAT is an indirect tax because the tax is paid to the government by the seller (the business) rather than the person who ultimately bears the economic burden of the tax (the consumer). [4] Opponents of VAT claim it is a regressive tax because the poorest people spend a higher proportion of their disposable income on VAT than the richest people. [5]
VAT is now being added to private school fees after new rules came into force on 1 January. The government plans to spend the money raised on more teachers for state schools in England.
Private school leaders have warned the combination of tax hikes in the Budget and the removal of their charitable status, which saw fees exempted from VAT, could lead the sector to “fall apart”.
The IFS also says “it would be reasonable to assume that an effective VAT rate of 15% would lead to a 3–7% reduction in private school attendance”. This would amount to around 17,000 to ...
EU VAT Tax Rates. The European Union value-added tax (or EU VAT) is a value added tax on goods and services within the European Union (EU). The EU's institutions do not collect the tax, but EU member states are each required to adopt in national legislation a value added tax that complies with the EU VAT code.
Replying for the Government, Mr Murray said: “Whilst private schools will now be required to charge VAT on the education services and vocational training they provide, we expect most private ...