VAT is added at each stage in the process, John, so that on import the wholesaler pays the appropriate percentage (up to 25%, depending on the country), and then each handler adds the same percentage to their sale price, after allowing for the recovery of the VAT charged by the person before them in the line. So at the end, if a thing costs $100 and is handled by three people each adding 10% in value, the costs and prices (assuming a tax rate of 25%) increase as follows:
Importer: Cost 100 plus notional VAT of 25, sell for 110 plus 27.50, pay 2.50 to the government (note he will already have paid 25.00 on import). Wholesaler: Cost 110 plus actual VAT of 27.50, sell for 121 plus VAT of 30.25, pay 2.75 to the government Retailer: Cost 121 plus VAT of 30.25, sell for 133.10 plus VAT of 33.28, and pay 3.03 to the government. So the ticket price to the purchaser is 166.38, the retailer makes a profit of 12.10, the people actually importing and selling the item have made a gross profit of 33.10 between them, and the government takes 33.28 on an item costing 100 on import! No wonder governments love this style of consumption tax... John in Brisbane -----Original Message----- From: PDML [mailto:[email protected]] On Behalf Of John Sent: Friday, 19 February 2016 10:31 To: Pentax-Discuss Mail List <[email protected]> Subject: Re: Prices of the new Pentax body and lenses I think the European retailer has to pay VAT on the wholesale cost & then passes it along in the sales price. On 2/18/2016 12:55 PM, P.J. Alling wrote: > They also have the VAT. I'm not sure how that works on imported > goods, but it can't lower prices. > > On 2/18/2016 12:17 PM, John wrote: >> Wouldn't European prices depend on the value of the Euro against the >> Yen, instead of against the Dollar? >> >> Plus, I'm pretty sure you have higher import duties than the U.S. >> >> On 2/18/2016 9:26 AM, Jaume Lahuerta wrote: >>> Unfortunately, prices in euros are always more expensive, even >>> though the euro value is (still) higher than the US$. >>> Pentaxeros list the K1 for 1999 EUR. >>> http://www.tiendapentaxeros.com/fotografia/pentax-k1-full-frame-cuer >>> po-p-6510.html?osCsid=11922ba8981c70fa98adb09433fb9730 >>> >>> >>> El Jueves 18 de febrero de 2016 5:54, Igor PDML-StR >>> <[email protected]> escribió: >>> >>> >>> >>> >>> I may have missed this information on this list, or maybe everybody >>> has read it elsewhere, - but I just found what the release prices >>> are going to be for the new Pentax body and lenses. >>> >>> Adorama offers the for preorder (all USD): >>> K-1: $1800 >>> 15-30/2.8: $1500 >>> FA 28-105mm f/3.5-5.6 ED DC WR Lens: $500. >>> Pentax D HD FA 28-105mm f/3.5-5.6 ED DC WR http://goo.gl/StLkcV >>> >>> >>> So, that body price is not prohibitively high. >>> I'd assume that once the dust settles, the would eventually (by Black >>> Friday?) come down to the vicinity of 1.5-1.6k. >>> >>> Igor >>> >>> >>> >> > > -- Science - Questions we may never find answers for. Religion - Answers we must never question. -- PDML Pentax-Discuss Mail List [email protected] http://pdml.net/mailman/listinfo/pdml_pdml.net to UNSUBSCRIBE from the PDML, please visit the link directly above and follow the directions. -- PDML Pentax-Discuss Mail List [email protected] http://pdml.net/mailman/listinfo/pdml_pdml.net to UNSUBSCRIBE from the PDML, please visit the link directly above and follow the directions.
