how does the VAT/TAX work

[jfm]

Hahaha. I told someone the other day that, with a 20% VAT rate, the VAT element of the gross was 1/6 and they looked at me as if I'd farted in church and then told me it was 1/5. Not VAT advice just simple arithmetic. Sheesh, some people!

You highlight there a mistake made by governments at inception of vat. They should have expressed vat as a percentage of the inclusive price, then our vat would be 16%. I hear lots of people say "sheesh I pay 50% income tax then on the 50% I've got left they take 20% vat!" But of course it's 16%%

If you think about it this is how income tax works. We refer to that as 50% or whatever but if we referred to it as government's slice divided by citizen's slice, as we do with vat, it would be 100% income tax

All smoke and mirrors of course. But governments have missed a trick there

 

[jfm]

Isn't it better that that when you factor in the depreciation over the period that you own it.
You only depreciate the boat's value and not the depreciation on the VAT
Or have I got my maths wrong?????

Yup if you can hold a boat without paying vat then logically the depreciation is lower. TI boats, for example, work like this

 

[Hurricane]

Yup if you can hold a boat without paying vat then logically the depreciation is lower. TI boats, for example, work like this

Unfortunately, as you know, we wanted to keep the boat in Spain and using her privately so paying the VAT was really the only option.

 

[MapisM]

Unfortunately, as you know, we wanted to keep the boat in Spain and using her privately so paying the VAT was really the only option.

Now, that made me smile.
Sounds like an apology for having done what, in a civilised world, should be the only option for everybody, period. :ambivalence:

 

[Rocksteadee]

Another "Non tax paid" if not already been mentioned (not read whole thread) is that the marina tax has not been paid as it has not left the marina in a while even if it is VAT paid.
Think this was a bit of a scam by the uncoruptable Italian government to glean more money out of the world

 

[MapisM]

Another "Non tax paid" if not already been mentioned (not read whole thread) is that the marina tax has not been paid as it has not left the marina in a while even if it is VAT paid.
Think this was a bit of a scam by the uncoruptable Italian government to glean more money out of the world

Huh?
From your statement, it's impossible to understand what you have to say, if anything.
And the only thing that comes through is the rant.
Are you a Daily Mail columnist, by chance? :nonchalance:

 

[Rocksteadee]

A couple of years ago the Italian government put in place a tax on pleasure boats enforced by the marinas, as the Italians objected to this they did not use their boats so did not pay the tax which accumulated until a new owner had to pay all the back tax.
There was a lengthy thread on here about it
The rant was a tongue in cheek bit of sarcasm

 

[MapisM]

A couple of years ago the Italian government put in place a tax on pleasure boats enforced by the marinas, as the Italians objected to this they did not use their boats so did not pay the tax which accumulated until a new owner had to pay all the back tax.

Thanks for the clarification, but I'm afraid that not one bit of this sentence is actually true.

I mean, yes, in 2012 the IT government did put in place a pleasure boat related tax, BUT:
1) it wasn't (and still isn't) "on pleasure boats". It's on Italians owning/holding a pleasure boat.
2) no marina has ever been entitled to enforce it;
3) Italian boaters were obviously not happy about it, but they HAD to pay it, regardless of whether their boats were actually used or not. And this is 100% true for anyone owning an IT registered boat. Possibly, Italians owning unofficially boats registered elsewhere did not pay, but that's not relevant in this context, because these boats are neither registered nor berthed in IT.
4) The tax was (and still is) levied on physical persons, and as such is not transferrable in any manner to a new owner, if and when the boat is sold.

 

[Rocksteadee]

I stand corrected
The bit I had then picked up on was the scare mongering 2 years ago of the Italians decimating their pleasure boat industry.
To a degree it is still there today as I have heard of some who will not go there for fear of huge marina taxes