The SteelNavy.Com Message Board: Re: What is a VAT as opposed to Tariff?

VAT is Value Added Tax - plain and simple it is a sales tax.

In the UK VAT is 20% on most goods sold but there is also a 5% rate charged on some items (fuel, insulating materials, some medical items) and a 0% rate 'applied' on most foods, children's clothing and shoes, books and newspapers, educational materials, etc.

UK VAT is not charged on goods exported so on-line model shops such as Hannants have to show two prices - UK (which includes VAT) and export (no VAT).

I have argued with my Member of Parliament that models are educational but he won't budge!!

In Spain VAT is IVA, in Australia GST and so on - I think most US States have a Sales Tax.

--Previous Message--
: Try selling in Europe and this comes up. What
: is it as opposed to Tariff?
:
: --Previous Message--
: Here is an excellent short article from
: Fortune magazine that explains:
:
: Americans of all political persuasions and
: economic strata can agree that policies that
: support affordable homeownership and housing
: are laudable and worth pursuing.
:
: So every citizen should be deeply concerned
: about the U.S. Department of Commerce’s
: recently announced plan to impose
: countervailing duties averaging 20% on
: Canadian softwood lumber. This unjustified
: tax will raise the cost of housing for
: millions of American households.
:
: "Lumber is, by far, the predominant
: building material used in new home
: construction, and there are 15,000 board
: feet of lumber in a typical new home.
: America must import about one-third of its
: lumber supply from Canada because U.S.
: lumber production is simply not robust
: enough to meet the nation’s needs.
: Therefore, lumber imports are vital for the
: construction of affordable homes for
: American families.
:
: Lumber prices have already soared more than
: 20% since the beginning of the year, largely
: because the markets were already factoring
: in the effects of the anticipated tariff. In
: practical terms, this jump in lumber prices
: has already added nearly $3,600 to the cost
: of a new single-family home. Simply put,
: inflated lumber prices already act as a tax
: that U.S. homebuyers pay for to subsidize
: corporate lumber producers.
:
: So obviously, U.S. lumber producers have a
: big incentive to ensure lumber import
: tariffs and quotas are in effect. That just
: means bigger profits, largely funded by
: American homebuyers. It’s also why lumber
: producers have gone to this playbook five
: times since the 1980s by requesting
: investigations to determine if Canada was
: subsidizing lumber exports to the U.S. In
: two of the three most recent investigations,
: it was ultimately ruled that the U.S.
: industry’s subsidy allegations were
: unfounded; the third was never completed
: because a negotiated settlement was put in
: place.
:
: Imposing unwarranted, protectionist trade
: barriers that hurt millions of American
: citizens in order to line the pockets of the
: large, domestic lumber producers is not the
: answer to resolve the U.S.-Canada lumber
: trade dispute, or encourage economic growth.
:
: Canada and the U.S. need to work together to
: promptly hammer out a long-term solution
: equitable to all parties that will ensure a
: lasting and stable supply of lumber imports
: into the U.S. at a competitive price."
:
:
:
: http://fortune.com/2017/04/27/canadian-softwood-lumber-tariff-housing-market/
:
: --Previous Message--
: Take the US duty on Canadian lumber as a
: good
: example. Canada supplies the US with one
: third of its softwood lumber. When the US
: tariff went into effect, the US price of
: lumber across the board jumped significantly
: with the avg new 1800 sq ft home going up
: $3,000 to pay for the tariff.
:
: The thing that has happened 5 times in a row
: now is when the tariff went to dispute
: resolution, Canada won every penny back.
: Each time. What doesnt happen is the US
: consumer getting his money back.
:
: --Previous Message--
: Any tariff is suppose to be against the
: country of origin and unless Revell falsely
: puts Made in Germany on the product, a
: tariff would apply to that product as well,
: once it got here.
:
: Note: neither the country of origin or any
: transhipped-thru country pays the tariff.
: The American consumer pays it. Tariffs are
: really a tax on the consumer, with the idea
: of making competing products (American) more
: desirable because they dont have the tax
: attached. What it really does is raise the
: price to consumers and lessens competition.
: Same thing happens in China when they tariff
: our goods in retaliation .. the price of US
: pork and soybeans goes up for the Chinese
: consumer.
:
: There have been very few trade wars where
: any country wins. Its usually tit for tat
: and the consumer pays.
:
:
: --Previous Message--
: For the first round, I found no mention of
: 'hobby' or 'toy' on the list... though r/c
: radios and motors are on the list.
:
: 2nd proposed round (100 billion) was said to
: be enough to cover everything else.
:
: Now, if Revell Germany sells their
: Chinese-made plastic here, I'd expect no
: tariff... maybe?
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