VAT Rate Change 4th of January

The great United Kingdom is broke. Ok, maybe not totally, but this situation is not …

The great United Kingdom is broke. Ok, maybe not totally, but this situation is not brilliant. Yes, all Europe and the US are broke too. Anyway, the state has two ways to have a balanced budget: spend less or get more income. Usually, if you are a family and you have financial problems, you first cut on expenses because it is very hard to earn more money in difficult times. For the state, it is easier, they just get a new law signed by the Queen.

All that to say that after the VAT raise from 15% to 17.5% January the 1st this year, 1 year and 4 days later, the VAT is raised again to reach 20%. In two years we are going to reach the 25% of Denmark.

For US people, the VAT or Value Added Tax is a kind of sales tax but without the negative effects of the sales tax. That is, only the last consumer is paying it and practically it has no effects on businesses as they can reclaim the VAT. You can learn more about the VAT on Wikipedia.

Anyway, this means that if you pay for your forge before the 4th of January (until January the 3rd at midnight UK time) you save 2.5% (but only if you need to pay the VAT, of course).

Created: Thu 23 December 2010
Updated: Thu 23 December 2010
By Loïc d'Anterroches.

Tags: InDefero
Archives: 2010 / December
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