I understand the working of VAT as it applies to businesses but it's
never occured to me to wonder where it goes to.

Is it just added into the general taxation pot and treated like any
other stream of government revenue or does it (or a portion of it) go
direct to the EU?

If it doesn't go to the EU then I assume that we give money to the EU
via some other mechanism; what is it?

Thanks for any enlightenment.

--

Andy

Andy Lord wrote:

> I understand the working of VAT as it applies to businesses but it's
> never occured to me to wonder where it goes to.
> 
> Is it just added into the general taxation pot and treated like any
> other stream of government revenue or does it (or a portion of it) go
> direct to the EU?
> 
> If it doesn't go to the EU then I assume that we give money to the EU
> via some other mechanism; what is it?
> 
> Thanks for any enlightenment.

It goes to the general taxation pot.

I believe part of our contribution to the EU budget is based on VAT
receipts.

it goes to the EU for the betterment of our living. its good that we pay
that. atleast we are happy that we are getting good roads and other
facilities coz of them
Vik




-- 
finvik

On Mon, 11 Aug 2008 18:50:55 +0100, finvik
 wrote:

>
>it goes to the EU for the betterment of our living. its good that we pay
>that. atleast we are happy that we are getting good roads and other
>facilities coz of them
>Vik

You are having "A little joke" with us -yes ?  :)

Derek

"Andy Lord"  wrote in message 
news:1d5eb36a-7219-4d69-940d-298492dbd03d@k13g2000hse.googlegroups.com...

The prick returns!

LOL!

On Aug 11, 6:50 pm, finvik  wrote:
> it goes to the EU for the betterment of our living. its good that we pay
> that. atleast we are happy that we are getting good roads and other
> facilities coz of them
> Vik

Here:

http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/index_en.htm

the EU has produced a long layman's explanation of how it all works
but I cannot actually find i nit a statement in there about where the
VAT actually goes.  It says it is paid "to the revenue authoriities"
but it does imply that it goes to the EU in a short sentace  near the
bottom:

"It was not until 17 May 1977 that the Sixth VAT Directive was adopted
which established a uniform VAT coverage. This guarantees that the VAT
contributed by each of the Member States to the Community's own
resources can be calculated."



Robert

On Aug 10, 5:38 pm, Andy Lord  wrote:
> I understand the working of VAT as it applies to businesses but it's
> never occured to me to wonder where it goes to.
>
> Is it just added into the general taxation pot and treated like any
> other stream of government revenue or does it (or a portion of it) go
> direct to the EU?
>
> If it doesn't go to the EU then I assume that we give money to the EU
> via some other mechanism; what is it?

If you understand the working of VAT, as you claim, then you should
know whether a business pays all the VAT to HMRC or some of it is paid
directly to some entity in Brussels.

wrote in message 
news:404a59c3-ec03-4fbe-b15a-75d8300f998e@f36g2000hsa.googlegroups.com...
On Aug 10, 5:38 pm, Andy Lord  wrote:
> I understand the working of VAT as it applies to businesses but it's
> never occured to me to wonder where it goes to.
>
> Is it just added into the general taxation pot and treated like any
> other stream of government revenue or does it (or a portion of it) go
> direct to the EU?
>
> If it doesn't go to the EU then I assume that we give money to the EU
> via some other mechanism; what is it?

If you understand the working of VAT, as you claim, then you should
know whether a business pays all the VAT to HMRC or some of it is paid
directly to some entity in Brussels.

------------------------------------------------------------------

No it doesn't work like that.

The business pay all of their VAT to HMG, HMG then give some of it to the EU

tim

On Aug 17, 7:26 pm, "tim....."  wrote:
>  wrote in message
>
> news:404a59c3-ec03-4fbe-b15a-75d8300f998e@f36g2000hsa.googlegroups.com...
> On Aug 10, 5:38 pm, Andy Lord  wrote:
>
> > I understand the working of VAT as it applies to businesses but it's
> > never occured to me to wonder where it goes to.
>
> > Is it just added into the general taxation pot and treated like any
> > other stream of government revenue or does it (or a portion of it) go
> > direct to the EU?
>
> > If it doesn't go to the EU then I assume that we give money to the EU
> > via some other mechanism; what is it?
>
> If you understand the working of VAT, as you claim, then you should
> know whether a business pays all the VAT to HMRC or some of it is paid
> directly to some entity in Brussels.
>
> ------------------------------------------------------------------
>
> No it doesn't work like that.
>
> The business pay all of their VAT to HMG, HMG then give some of it to the EU
>
> tim

but what proportion of it is given to the EU?     It seems such an
important and interesting question that it seems odd that nobody has
yet come up with the answer.



Robert

RobertL wrote:

> but what proportion of it is given to the EU?     It seems such an
> important and interesting question that it seems odd that nobody has
> yet come up with the answer.

From what I can see, it is approx 0.33%, but it is adjusted for things like
our zero rating of food, books and children's clothes.  Then we also get
our Maggie Thatcher negotiated rebate to take into account the fact that we
get very little money back from the Common Agricultural Policy.

On Aug 18, 8:00 pm, Jonathan Bryce <jonat...@localhost.localdomain>
wrote:
> RobertL wrote:
> > but what proportion of it is given to the EU?     It seems such an
> > important and interesting question that it seems odd that nobody has
> > yet come up with the answer.
>
> From what I can see, it is approx 0.33%, but it is adjusted for things like
> our zero rating of food, books and children's clothes.  Then we also get
> our Maggie Thatcher negotiated rebate to take into account the fact that we
> get very little money back from the Common Agricultural Policy.

Do you have a reference for that figure?   It is often said that the
EU contribution is related to GDP but I suupose that VAT is related to
GDP so that would fit.

Robert