Politicians NEVER work these things through they are too stupid.
If they are currently exempt from charging VAT then I assume they cannot claim back VAT on "inputs". If they have to charge VAT then presumably they will be able to reclaim on everything but salaries.
Hi Peter - to your first point - absolutely. Politicians and bureaucrats can be relied on to exaggerate the benefits, underestimate the costs, and ignore unintended consequences.
You're right on the second point. VAT-exempt bodies can't reclaim VAT on purchases. If schools become subject to VAT, they'll be looking to reclaim VAT on purchases, hence I argued that the effective rate is 15% not 20%. Thanks for reading.
Politicians NEVER work these things through they are too stupid.
If they are currently exempt from charging VAT then I assume they cannot claim back VAT on "inputs". If they have to charge VAT then presumably they will be able to reclaim on everything but salaries.
Hi Peter - to your first point - absolutely. Politicians and bureaucrats can be relied on to exaggerate the benefits, underestimate the costs, and ignore unintended consequences.
You're right on the second point. VAT-exempt bodies can't reclaim VAT on purchases. If schools become subject to VAT, they'll be looking to reclaim VAT on purchases, hence I argued that the effective rate is 15% not 20%. Thanks for reading.