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The politicians lied to us when we went into Europe when they said that VAT would replace Purchase Tax. PT was on luxury goods but they didn't tell us VAT would be on practically everything.
one shot
Originally VAT was advertised as a tax "on luxury goods only".
Over the years it has been covertly introduced on to just about everything you buy or use - including gas, electricity, your bag of chips from the chippy and your local car park.
Remember when your local public convenience cost 2p to use - even that was VAT'd.
VAT is in the same league as the "25p per prescription to cover administration costs". About £6.75 per item now I believe. Introduce it - get it accepted and then turn the screws down hard.
dels replies
Vat is on everything except food and childrens clothes. One or two other exceptions..Nothing to do with luxury items at all.
Felidae
There're only a few things that do NOT have VAT on them - so you'd better get used to it.
It's mainly things like unprocessed food (Think apples, pears, meat, etc) which can escape VAT, as can Childrens clothes.
Rolsy
It is not true that VAT is levied on luxury items only but even so, owning a car could be considered a luxury! I am VAT registered and have to charge VAT to my customers when I repair their laptops.
stormydays
Vat is charged on most items
The garage have to be registered because they are in excess of the Vat threshold so they have no choice.....everything they purchase has Vat on it so everything they charge will have also
They will add up all the vat charged to customers and deduct all vat they have paid for parts etc and what ever the difference is will be paid to customs(more vat in that out) or cliaimed back (more vat out than in)
SteveT
VAT is on practically everything apart from food and children's clothes. It's not just on luxuries