Tory manifesto promise - No VAT increases

[AtW]

'We' want the likes of Amazon to pay more tax but higher VAT, or sales tax or whatever won't be paid by Amazon

All business taxes are ALWAYS paid by the consumer, ALWAYS - just a matter how many degrees of separation there, usually not many.

[Whorty]

I actually agree with a higher VAT on goods sold online, and use that to offset reduction in business rates to High Street shops - in fact I agree with higher VAT in general to offset reduction in income tax for most people, let them decide how to spend THEIR money.

25% VAT overall, and 30% for good sold online.

Simples.

It's not that simple though is it?

'We' want the likes of Amazon to pay more tax but higher VAT, or sales tax or whatever won't be paid by Amazon so the problem isn't being addressed ... well, the government's need to raise more tax is being addressed but that's not the problem the thick public think is being addressed.

As for raising VAT, this tax hits the poorer in society proportionately more than the most affluent. Not good for the Tories if they now want to be seen as the party that helps the poor northerners that helped them into power.

The 'sale tax' needs to be on sales revenue and paid directly by the corporations if it is going to be seen to be a tax on the likes of Amazon. Yes, I know ultimately the consumer will pay with higher prices, but it may also take some of the profits from these corps.

Of course, the real solution is to tax the real profits and not let these corps offshore their profits to lower tax countries (I'm an accountant by training and I've seen first hand the little tricks corps follow to do this .... such an easy wheeze).

Or we could just become that low tax haven country so Big Corp starts to funnel all profits through us rather than Luxemburg

[AtW]

I actually agree with a higher VAT on goods sold online, and use that to offset reduction in business rates to High Street shops - in fact I agree with higher VAT in general to offset reduction in income tax for most people, let them decide how to spend THEIR money.

25% VAT overall, and 30% for good sold online.

Simples.

[AtW]

The problem is

That's not the Govts problem, it's the problem of all those who said "Yeah, it's great idea!"

I wonder if the new tax levy duty fee contribution whatever will apply to only brand new sales, like VAT does.

And if it's not VAT (which has got a working mechanism for collecting it for overseas sales) then would they intro same thing for the new "online sales tax", would it also apply to services?

Would it apply to B2B sales?

Would it apply if the user is in the UK or overseas?

[eek]

“ Recent polling by James Johnson, Theresa May’s former pollster, for Kekst CNC found that an online sales tax would be the most popular way of recouping some of the costs of the Covid crisis: 56 per cent of voters want online retailers to pay more tax and only 6 per cent want them to pay less.

“People feel overwhelmingly that online retailers do not pay the tax they are due, and that they have thrived while physical retail has suffered over the last nine months,” Johnson said. “People say it is “only fair” that they now pay back in.”



As if it would be retailers who will pay sale price level tax - very few people got MF sized margins

The problem is that they don't ask the follow up question (which the other 44% already know is the outcome).

To pay the 5% tax you want, online prices will need to increase by 5%. Do you wish them to pay more tax?

[AtW]

Behind paywall so can't read the article, but how exactly will an online sales tax hit the likes of Amazon?

It won't, obviously, but if you dress it like punishing dirty spekulants like MF then the public would applaud it!

[Whorty]

“ Ministers believe an online sales tax might help stem the collapse of the high street and its impact on tax revenues. The online fashion retailer Boohoo recently bought the brand of the failed Debenhams department store to use online, but does not want to operate the chain’s shops.”

and tax on fatty’s profits -

“ Treasury officials have summoned tech firms and retailers to a meeting this month ahead of the budget to discuss how an online sales tax would work, according to leaked emails.

The Downing Street policy unit is also working up proposals for an “excessive profits tax” on companies that have seen profits surge as a result of the crisis.”

Amazon and online giants face tax raid on booming sales | News | The Sunday Times

Online sales tax isn’t VAT, so promises kept!

Behind paywall so can't read the article, but how exactly will an online sales tax hit the likes of Amazon? Surely if it works like VAT it's the consumers who pay, and Amazon is only collecting the tax? Or do the likes of Amazon get hit with an additional tax on sales revenue like they would on profits (well, if Amazon ever paid any corp tax on profits lol)

Also love that this is a solution to helping the High Street Surely if all we want to do is level the playing field we should be reducing the rates of high street shops.

[AtW]

“ Recent polling by James Johnson, Theresa May’s former pollster, for Kekst CNC found that an online sales tax would be the most popular way of recouping some of the costs of the Covid crisis: 56 per cent of voters want online retailers to pay more tax and only 6 per cent want them to pay less.

“People feel overwhelmingly that online retailers do not pay the tax they are due, and that they have thrived while physical retail has suffered over the last nine months,” Johnson said. “People say it is “only fair” that they now pay back in.”



As if it would be retailers who will pay sale price level tax - very few people got MF sized margins

[darmstadt]

What, even with countries that have an FTA [emoji1787][emoji1787][emoji1787]

Import duties will outweigh any benefits of that

Sent from my 5g carrier pigeon

[AtW]

Depends on how much it is. If it's too much, everyone will just order from websites in other countries

They’ll have to collect it same way they have to collect VAT now

Smart thing would have been to just increase VAT on online sales to say 25%, but since Tories are honest politicians who promised not to increase VAT they will create new complex tax

[ladymuck]

Depends on how much it is. If it's too much, everyone will just order from websites in other countries

Sent from my 5g carrier pigeon

Import duties will outweigh any benefits of that

[darmstadt]

Depends on how much it is. If it's too much, everyone will just order from websites in other countries

Sent from my 5g carrier pigeon

[AtW]

“ Ministers believe an online sales tax might help stem the collapse of the high street and its impact on tax revenues. The online fashion retailer Boohoo recently bought the brand of the failed Debenhams department store to use online, but does not want to operate the chain’s shops.”

and tax on fatty’s profits -

“ Treasury officials have summoned tech firms and retailers to a meeting this month ahead of the budget to discuss how an online sales tax would work, according to leaked emails.

The Downing Street policy unit is also working up proposals for an “excessive profits tax” on companies that have seen profits surge as a result of the crisis.”

Amazon and online giants face tax raid on booming sales | News | The Sunday Times

Online sales tax isn’t VAT, so promises kept!