Subject:
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Re: Lego prices?
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Newsgroups:
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lugnet.general
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Date:
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Thu, 15 Jan 2004 07:07:06 GMT
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Viewed:
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1011 times
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In lugnet.general, Pedro Silva wrote:
> In lugnet.general, Anders Isaksson wrote:
> > Pedro Silva wrote:
> > >
> > > To cut a long story short, VAT is not meant to fund healthcare. VAT
> > > is used for "financing" the EU and is redistributed in the form of
> > > (mainly) agricultural subsidies, but also the "convergency funds"
> > > that have allowed for infrastructural work in poorer countries.
> >
> > The VAT is a tax on sales, and the money drawn in can be used for anything
> > by the government.
>
> Not quite so...
> The bulk of VAT goes to Brussels. A portion is used to finance the EU's organs,
> and another is distributed in the form of subsidies, grants and convergency
> funds - all of which have strict allocation rules (mainly, for structural public
> works). The small portion of VAT that a country may or not charge above EU's
> requirements is added to the "cake", but has comparably low impact over
> healthcare financing.
>
> > OTOH, EU has regulated VAT for its member countries, it can't vary too much
> > between countries, and you may not have too many different VAT levels (I
> > think we have one for food, one for building materials, and one for
> > everything else).
I'm not quite sure if this is really the case. In Denmark our VAT (its called
MOMS here) have been 25% on all sales, all commodities since before we joined
the EEC in 1972, and it still is. It is used as a part of the state finances
together with taxes, and has nothing to do with our contribution to the EU.
There has been no discussion on lowering the 25% (highest in EU?), only on maybe
keeping some articles free of VAT - but no actual plans has been made for that.
This high VAT is one of the reasons Shop-at-Home prices for Denmark is larger
than for other EU countries, even if the bricks are fabricated here.
Arne, Copenhagen
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Message has 1 Reply:
 | | Re: Lego prices?
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| (...) Yep, I think the Danish system is modelled after the Swedish one, long before anyone was a member of the EU. We also call it MOMS (and before that was OMS). (...) It's the same in Sweden (except for food and building materials, which are (...) (21 years ago, 15-Jan-04, to lugnet.general)
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Message is in Reply To:
| | Re: Lego prices?
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| (...) It was known as "EEC" from 1957 until 1992, then "EC" until 1995 - so technically, you're correct: the "EU" isn't that old. :-) Is it possible that this is a mere coincidence? Before we joined the EEC we had a similar sales tax (with a (...) (21 years ago, 14-Jan-04, to lugnet.general)
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