What is VAT? | Back to Basics

Рет қаралды 142,123

2 жыл бұрын

Our latest Back to Basics video explains what is value-added tax (VAT) and how it works. bit.ly/3tp28VN
00:01 - What is VAT?
00:30 - How do value-added taxes work?
02:46 - Why VAT?
Watch more of our Back to Basics videos here:
• Back to Basics

Пікірлер: 42

@SmoothOthello Жыл бұрын

you had way too much fun making this

@m.s.599 9 ай бұрын

I find it weird that we pay taxes twice. Once when we get paid and then again when we buy stuff.

@WhatDuhAzn 8 ай бұрын

So is vat artificial inflating prices?

@exentr 21 күн бұрын

So, my concernings is. I am a fisherman. I sell my fish to the fish company. The fish company pays me the fish + 10% VAT. But what do I do with VAT? May I spend the VAT money to keep my business running and as a salary or do I save VAT till the tax authorities demand the VAT? Pardon my English

@wafflygamer2278 2 жыл бұрын

20% The standard rate of VAT increased to 20% on 4 January 2011 (from 17.5%). Some things are exempt from VAT , such as postage stamps, financial and property transactions. ... VAT rates for goods and services.

@niroshasudarshani3607 Жыл бұрын

Ohhh nice explanation dr🎉

@curb_shifter 2 жыл бұрын

now explain inflation as hidden tax,... aaand go

@maths8619 5 ай бұрын

I need to know about Silva credit banking

@caucausation2882 Жыл бұрын

Great finely I’ve got it

@KW-gb9cd 2 жыл бұрын

3:33 Funding for creating equality? What exactly does that mean?

@a_als 2 жыл бұрын

Eg. building more schools in low income areas to help gain equal access to education

@theofficialmascot Жыл бұрын

it means they try to make you feel good about getting ripped off and being charged extra

@josephpeters2619 4 ай бұрын

So it’s a sales tax with extra steps.

@rushdHBTS 2 жыл бұрын

Most people don't have time to understand VAT. They pay blindly.

@surbon514 Жыл бұрын

I think VAT is needlessly complicated and unfair to the poor and working classes. Except for Switzerland and the Nordic countries, Europeans make much lower salaries than Americans on average. The poor and working classes would get crushed even further in my country, the US, if they had to pay 20% VAT on everything. That's a VERY big bite of what little income some people have!

@thelonercoder5816 Жыл бұрын

and Europeans love to brag about all their benefits lmao.. this is why they get so much social benefits.. high taxes.

@UrbanMouse 10 ай бұрын

So VAT is why the poor and working classes or so much better off in the US ?

@shoarmik6389 Жыл бұрын

I still don't get the argument that without VAT businesses would collect a tax, what tax are we talking about?

@surbon514 Жыл бұрын

The sales tax we pay in the US, for example. It can be anywhere from 0-10% (6% here, and it's NOT included in the price tag) This kind of tax is basically all paid for by the final consumer, if a mechanic buys parts from a parts company, he doesn't pay tax and worry about credits. The final consumer pays that 6% here, and 4 times a year, the mechanic submits his payment and tax forms to the government.

@YAHUAHlaughs Жыл бұрын

Whether illegally or legally they earn the same amount of money so it motivates them to report the taxes collected because they’re getting the money back either way

@scoundlerr8911 6 ай бұрын

BA?

@oo--7714 Жыл бұрын

Honestly it’s too high, I wouldn’t be malding if it was 4-10% but 20%, too excessive holy shit.

@surbon514 Жыл бұрын

That's understandable, but it's so hard to compare apples to apples in two different countries. France and the UK both have minimal property taxes, whereas in the US, they can be quite high since here, most of the responsibility for paying for local services and schools falls on property owners. This drives up rent, too! Consider retirees for example. They make fewer major purchases so even though the rate is 20% in the UK and France, but they end up in good shape because if you're not gaining much, you're not spending much on VAT purchases. We Americans can't make our property/school taxes drop.

@kimmanning2913 2 ай бұрын

We can do whatever we want. Their sin vat is full.

@9mmwaffle. Ай бұрын

Pro tip: give tax breaks to the consumer so everyday people don't pay the bill. In the US particularly corporations are avoiding taxes like the plague