No, a VAT tax is a "value-added tax", like a sales tax except that each business pays it on the value they add (sales minus purchases) so that there is no incentive for vertical intergration, and economic efficiency from specialization is maintained. The tax is also applied to imports.
In Canada our "GST" (goods and services tax) works the same way. Doug Woodard St. Catharines, Ontario, Canada On Sat, 2 Oct 2004 [EMAIL PROTECTED] wrote: > Hi Damian, > > Being from the USA (meaning ignorant <grin>), I would like more > information on the VAT. I did a search and found a definition: > http://www.eurunion.org/legislat/VATweb.htm#Definition > > >From reading the link, I have made the assumption that if a person in > Ireland purchases a pellet heating system that was manufactured in another > member state (example- France), that person would have to pay a 21% VAT? > > But, if a person purchases a pellet heating system that was manufactured > in their own country (Ireland), they don't have to pay the 21% VAT? > > Am I thinking correctly? > > Thanks, > Ron B. _______________________________________________ Biofuel mailing list [EMAIL PROTECTED] http://wwia.org/mailman/listinfo.cgi/biofuel Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuel archives at Infoarchive.net (searchable): http://infoarchive.net/sgroup/biofuel/
