[ENBD] Re: [Ltsp-discuss] ENBD with removable media

[Alan Messer]

Peter T. Breuer wrote:

> Yes, I guess so. It's all done by businesses, though, so I don't have
> much practical experience with it (I don't run a business). The idea
> is that the tax is only paid once on the item - I'm not sure how the
> sell/resell chain deals with it. If you say "everybody pays and
> everybody gets repaid at the end of the year", I'm willing to believe
> you, but I would have thought there was some internal mechanism in the
> chain. Business always want to know (and have) a "VAT number", so I
> guess they can interchange numbers instead of money for the VAT. Or
> something.


It works the second way. Businesses that sell to other business do 
not add VAT. Businesses have VAT numbers for dealing with the 
government. This means that even as a self-employeed contractor, 
you can buy stuff for your business without paying VAT (or by 
reclaiming it) by registering as a business with the government.

> Pretty much. I believe VAT is 17%, approximately. I didn't know food
> was zero-rated. Some things are.


I believe that the approximate definition is 'luxury items'. So 
beer has plenty of tax, however bread does not.

Alan.