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Subject: 
Re: Lego prices?
Newsgroups: 
lugnet.general
Date: 
Thu, 15 Jan 2004 14:33:06 GMT
Viewed: 
1068 times
  
In lugnet.general, Martin Bruun wrote:

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.

I have to disagree here. They can be used for anything.

It might be true for Portugal that the bulk of VAT is used to finance the
Portugeese contribution to EU, but that is the choice of Portugal, it is not the
case in Denmark.

Then I stand corrected, regarding Denmark and possibly other memberstates too.
Thanks to Arne as well for his input.
Out of curiosity: where is the danish contribution for the EU drawn from?

Of course I now have to ask exactly why we're paying similar prices in the
eurozone, VAT being different among countries? For instance, I pay the same
price as a Spanish consumer for a given set, but his VAT is lower (15% or so) -
are spanish consumers being "ripped off"? Or are we all paying danish VAT - if
so, isn't that illegal?


Pedro (who would love to shop for LEGO in Andorra :-)



Message is in Reply To:
  Re: Lego prices?
 
(...) I have to disagree here. They can be used for anything. It might be true for Portugal that the bulk of VAT is used to finance the Portugeese contribution to EU, but that is the choice of Portugal, it is not the case in Denmark. What is common (...) (20 years ago, 15-Jan-04, to lugnet.general)

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