Nigel Stanley wrote: > On 25/11/2008, David Sullivan > <[EMAIL PROTECTED]> wrote: >> Lanzarote (part of Spain) VAT 5%, income tax 5%, >> booze tax nil (AFAIK). You can buy a litre of 37.5% >> rum for euros 4.99. Surprisingly (?) rather a lot of >> Brits have retired there. No canals, though. >> > > It must have some special exemption for being a remote island. > > There is a 15 per cent minimum VAT rate across the EU with a limited > list of items (such as fuel and childrens' clothes) that have a 5 per > cent minimum and another list of things that can be entirely exempt > (such as books and newspapers). > > Looking at how expensive the temporary cut in VAT is, it's not > surprising that many countries have high rates. It raises lots of cash > - and is hard to avoid. And although it's much less progressive than > taxes on income, it seems less politically difficult. > > If I were being controversial I might say that this is possibly > because those who own and write for newspapers would lose from a > progressive tax system.
There is only one major EU country that had 15% VAT - Luxembourg. That is why a whole lotta internet retailers are based there -- Neil Arlidge - NB Earnest Follow the travels of TNC, now in Ireland http://www.tuesdaynightclub.co.uk/tour.html
