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Joined 2 years ago
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Cake day: June 29th, 2023

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  • Everyone who wants to sell goods or services in a country with VAT (not just the EU) must be registered with the country’s tax authorities, collect the VAT on behalf of the government, and transfer the collected tax money to the government. Not all VAT is bad, though, when trading across border. Here are two very common examples:

    1. Sale of goods from a higher-VAT country to a lower-VAT country. You have a Web site in Sweden where you list a product for €100. You sell the product to a customer in the UK. You ship the item, and charge the customer €96. That’s because the domestic VAT is already baked into the price (in the case of Sweden it’s 25%). Shipping outside the VAT jurisdiction, you don’t collect the local VAT on behalf of the government, and charge the VAT-less price of €80. You then add the UK VAT (20%). The customer is better off. (Of course, it also works the other way. I buy a lot from Amazon UK, but my country has a higher VAT than the UK, so I pay slightly more than the listed price.)

    2. VAT return when leaving the country. The reason you need to show your boarding pass when purchasing goods at the airport is that if you fly outside the country (or, if you are within the EU, the EU as a whole), you will be charged only the price without VAT. That’s because these goods are no longer considered to be sold in that country, so VAT cannot be collected on them.

    VAT is a little more complex than sales tax, but it affects the entire production chain, not only the final sale, so it allows the governments to collect on domestic economic output, not only on purchasing power. But it’s truly aimed at domestic production. For cross-border commerce, import taxes play a much more important role.




  • I used Classic Shell to make it look as much as WinXP Classic as possible, so I’m happy with how it looks. As for vulnerabilities, knock on wood, so far I didn’t have any issues (but I do run Bitdefender). I use it for gaming (GOG, newest game being older than my PC), photo editing (Gimp with Google Nik Collection), browsing, and office work. Nothing too demanding. But to be honest, I would have switched to Mint a long time ago if I found a Linux alternative for Smart Switch (my phone backup utility) and Garmin Connect for my watch. Those two are the only two pieces of software that keep me with Windows, and at this point I’m actually thinking of a cheap mini PC just for those two as a direct pass-through to my NAS backup.




  • I agree overall, but VAT is not all that difficult to evade, at least in the service industry. Paying handymen in cash is common in many countries, and that’s a means to evade VAT. Hell, even using them to buy the building or landscaping materials for you (being a registered business they purchase for prices without VAT) saves you on most of the tax. Then there’s service barter. I did it only once, a long time ago, but it can serve as an example: I did family portraits (photography) for my physio, in exchange for a number of physio sessions. If we charged each other, it would have cost each of us, say, 250 Euros, but we’d only see 200 each, and the state would get 100. So, savings of 50 for each of us.