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Then again, Gold 200 isn't in stock in many online stores.
Yeah, I don't get that. I even posted a thread that Fuji 200 is back in stock for $25/3 pack. Which was about the same as that 20 yr old Gold sold for.
I mean, I expect that on craigslist, ebay etc. But not here on photrio!
@Alan Edward Klein I think you misunderstood something. Businesses reclaim the VAT of their expenses. VAT doesn't "add up" between transactions.
What does that mean?
VAT is charged on the increase in value of the transaction as it moves between sellers. SO, there may be VAT paid one raw materials by a manufacturer (that is recouped), but the VAT will be higher on the manufactured item. If there is another middle-man involved who marks the item up (a distributor, perhaps) that additional value is essentially what is being taxed. And so on to the final purchaser, who pays VAT on the total price of the item.@Alan Edward Klein I think you misunderstood something. Businesses reclaim the VAT of their expenses. VAT doesn't "add up" between transactions.
VAT is charged on the increase in value of the transaction as it moves between sellers. SO, there may be VAT paid one raw materials by a manufacturer (that is recouped), but the VAT will be higher on the manufactured item. If there is another middle-man involved who marks the item up (a distributor, perhaps) that additional value is essentially what is being taxed. And so on to the final purchaser, who pays VAT on the total price of the item.
VAT is charged on the increase in value of the transaction as it moves between sellers. SO, there may be VAT paid one raw materials by a manufacturer (that is recouped), but the VAT will be higher on the manufactured item. If there is another middle-man involved who marks the item up (a distributor, perhaps) that additional value is essentially what is being taxed. And so on to the final purchaser, who pays VAT on the total price of the item.
If the final purchaser winds up paying the full vat from all of the many producers, why not add just one sales tax at the end covering the full amount, other than sticker shock?And in each case, the entity charging the VAT only needs to remit to the government the net VAT for the period in question. That being the difference between what VAT they charged during that period, and the VAT they paid out. So if during the first quarter of 2023 your business was charged $30,000.00 in VAT but during the same quarter you charged your customer $40,000.00 VAT you only need to remit $10,000.00 for that quarter.
For seasonal businesses, it isn't unusual for the government to end up owing VAT to businesses during some parts of the year.
In addition, policy choices about what things and services are or are not taxed can be based on the goods and services themselves, rather than the identity of the purchaser. Up here, most food groceries and residential rents are two examples of things that don't attract GST.
And finally, as a result of bringing in GST, the experience in Canada was that in many, many cases businesses ended up modernizing their bookkeeping and accounting systems, in order to take advantage of being able to claim the "input tax credits".
When I used to prepare the GST returns for the businesses I did this, it was a simple matter of running a single report in our bookkeeping/accounting software, transferring a few numbers over to a computer generated government form, and instructing the software to generate and print the cheque for the remittance due.
We then walked next door to the bank and submitted the form and the payment - they returned our copy confirming payment.
State sales tax in America do have separate categories for no taxes on certain items such as food and medicine as well as no sales taxes on n purchases made by government agencies and charitable and non profit corporations like churches and universities.
If the final purchaser winds up paying the full vat from all of the many producers, why not add just one sales tax at the end covering the full amount, other than sticker shock?
Because parties in the chain buy lots of things that they end up consuming themselves, so they end up being the end user, and the sales tax they pay on those items increase their overhead, which requires them to increase their prices to their customers, which in turn means that those customers who are at the end of the chain end up paying much higher base prices and much higher tax.
In the VAT system, you don't end up with nearly as much tax on tax.
A sales tax would add a third leg to the taxation stool, with the promise of reducing both income and property taxes but the voters have turned it down numerous times.
That, and more. Here is an example of sales tax exemptions… a fascinating list. Some items clearly exempted for special interests. I’m surprised to have not seen “vintage analogue cameras and supplies” listed.
Because parties in the chain buy lots of things that they end up consuming themselves, so they end up being the end user, and the sales tax they pay on those items increase their overhead, which requires them to increase their prices to their customers, which in turn means that those customers who are at the end of the chain end up paying much higher base prices and much higher tax.
In the VAT system, you don't end up with nearly as much tax on tax.
In any case, when the final buyer in Europe or GB gets the receipt for a camera there, does it show the total VAT taxes applied or just the last one? Is the full extent of the VAT shown or hidden from the buyer?
Alan asks (but the multiquote does not seem to want to work at the moment):
My limited experience from working in the UK is that the price consumer pays for goods are inclusive of VAT and the VAT is basically invisible to the consumer. The price stated is the price paid. That seems consistent with the concept of value-added as the end-user is a consumer who does not add any value to the product they purchased... so they have no role in the VAT recovery accounting.
To keep this conversation discussion photography/film-based... when we buy and use film we consume, not add value to the film product. I'm not sure if that VAT, as well as VAT on chemistry, printing paper, etc can be recovered when the film is used in the production of an art photograph that is offered for sale, though. Seems like it might be recoverable, thinking logically (or illogically), since the production of an art product has an increased and added value using the various photographic supplies used in the production of that art. It's not clear to me where the added value chain ends.But it does seem like a very complex accounting that requires cooperation of suppliers to understand what VAT has already been paid in order to compute the difference that is owed after those materials are transmorgrified into something else.
Here is the tutorial I went to for a better understannding:
What Is Value-Added Tax (VAT)?
Value-added tax (VAT) is collected on a product at every stage of the supply chain where value is added to it, from production to point of sale.www.investopedia.com
For a simple explanation of how VAT works, click on this link and scroll down to the EXAMPLE and forget the rest.
To consumers, it sounds complicated but to businesses that complete a Vat return (tax return), the concept is simple.
View attachment 333519
It seems cameras and film are in the 23% highest VAT category. What about art? Can photos be considered art?
Jeez, I hope nobody mentions "use" tax...
Film might not be dead but this conversation sure is.
Then why don't you tune to another channel? Seems like you are wasting your time in this thread...
But your point that it has devolved into something entirely different, and potentially meaningless to the original intent, is quite accurate. But this is Photrio and that seems to happen!
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