On 2008-03-17 09:38:14 +0000, "Brian Sharrock" said:


"Andy Hall" wrote in message news:47ddb852@qaanaaq...
On 2008-03-16 23:51:07 +0000, "Dave Plowman (News)"
said:

In article ,
The Natural Philosopher wrote:
The VAT/duty scheme is an extremely flexible way to tailor taxation
effects to achieve the result you want.

No it's not. Controlled by the EU.

Existence yes/no is (almost), but not rates.

Practically, childrens' clothes are VAT free but technically they are zero
rated.


Close ..; but no cigar

In accordance with EU regulation/ Directives VAT _must_ be levied by member
states with a portion of the 'take' being remitted to Brussels.

Furthermore; the EU - in furtherance of an ever closer Union- wishes to have
VAT rates "harmonised" across the EU and has stipulated the bands and the
rates at which they can be applied by member states. The end-goal of the EC
is 'full-harmonisation' collectively the EU 'suffers' from 'Partial
Harmonisation'

Ever closer union.... Hmm... I wonder if there is VAT on KY jelly.


AIUI, member states have permission to vary the rates levied each within a
narrow range.

The EU declares that certain items are EXEMPT from VAT, (mainly medical
items. prosthetics etc...). all non-exempt goods and services should then
'Attract' the impost (no kidding, they actually use such language) at a
low-medium-high rate of VAT.

The member state decides what category of items to assign to the bands.

The UK , according to its critics, 'cheats' by establishing a rate of ZERO
percent as it's LOW band and bundles children's clothes, books, magazines,
papers and food, This could change today/tomorrow at a stroke of the pen of
Brown's Darling.

This is basically what I said. Childrens clothes do carry VAT, thus
techncally complying, but zero rated.