Indoor and Outdoor NEWS

European Vat travels through five hands!

Published by familystuff on March 23, 2010

A story of a kettle which is made in China and then sold in Europe.

Products like kettles are usually shipped from China to Europe by sea aboard Mother Vessels which are usually under the age of sixteen years.

The Chineese dockers load each container into the mother vessel in reverse order, enabling each port along the way to offload their container with ease and speed.

Hand number One,

Each country excepting caro enters documents to support the calculation of Vat and duty. This price is then passed onto the importer to sell the goods within Europe.

Hand number two,

The wholesaler then sells part or the hole shipment into customers within Europe and calculates a new price with vat. If it is a wholesale order, they then apply for a vat refund.

Hand number three,

The retailer then accepts the kettles and adds their make up including a vat calculation.

Hand number four,

Every retail group must send the vat difference between the cost price and the retail price of the goods to their government each month or quarterly, or yearly depending on the size of the company.

Hand number five,

Every company has audits, and all the above vat calculations are checked again.

Introducing Vat

When the new vat tax came in there were thousands of businesses to collect the revenue, now a days, eighty percent of the business is conducted by twenty percent of the companies. Thus leaving the collection of Vat very simple, at point of sale.

For example, Tesco would wire the money each night to the government bank accounts. Leaving a lot of people free to work on more important duties.

If Europe do not collect vat at point of sale soon, it is going to have a world wide increase in the cost of living. I say this with the knowledge that China has introduced vat and copied Europe in the needless paper trail creating cost to collect, therefore increasing the cost of goods.

The cost of collection, the old fashion way, is about fifteen percent and increasing as pensions become more costly. Europe needs to act now and revert the waste, recycle and reuse unwanted people into more challenging roles which will bring instant revenue to the coffers.

The vat collection arrives once a month, if Europe switches to point of sale, the money would be wired each night, increasing revenue, with no pension entitlements. Its a no brainier!