(I'm talking about countries where VAT applies to everything)

Most taxes are mandatory. VAT is not. When you buy a car, you know that, say, 10% of the price will go to the state. By paying the full price, you agree to pay that tax. Does this apply to everything? Yes. When you buy bread, you also accept the tax on it. Someone determined not to pay taxes could start a farm and survive without buying goods subject to VAT. I’m not saying avoiding taxes would be easy, but the choice exists. It is possible, so it is not forced. Does VAT take money away from the business owner? No. If someone offers a service for $100 and the state sets VAT at 10%, the customer pays $110. The state receives $10, and the business receives $100—the amount it wanted—so it loses nothing. By paying $110, the customer agrees to the tax. I don’t see a problem with this. If the business thinks nobody will pay $110, it can lower its price. The same principle still applies. So taxes that people agree to pay are possible.

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[–] [S] 1 point 1 month ago (7 children)
  • [–] 1 point 1 month ago (6 children)

    You still need buy seeds, farm equipment, fuel, etc. Also of which have VAT on them. Or are you suggestion I should also build my own equipment and drill for my own oil?

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  • [–] [S] 1 point 1 month ago (5 children)
  • [–] 1 point 1 month ago (4 children)

    So your genius plan for avoid VAT is to basically abandon modern society. I'll take the VAT, you do you.

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  • [–] [S] 1 point 1 month ago (3 children)

    Yes. You can take VAT and I'll choose it too, but you can't say it is mandatory

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  • [–] 1 point 1 month ago* (2 children)

    Sure. Breathing isn't mandatary either, you only really need it if you want to stay alive.

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