(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.
Exactly what you read. VAT is voluntary
Hmm. What’s with income tax? I think I could just become unemployed and save on income tax as well? Not own any land, property, businesses, cars, money etc and those kinds of taxes wouldn’t apply to me either? Is there even any mandatory tax by that definition?
Has something hacked your lemmy account?
No
Exactly what a hacker would say.
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.
The business has to report how much items they sold and pay $10 tax per item. Sure they can lower their price, but it will come out of their earnings … so they won’t.
At the end of the day the VAT get’s paid. So it’s not optional.
You don’t need to buy items with VAT
Sure, you can just not buy an item. Or you could steal it.
But if I want to eat and not be a criminal, I have to buy items with VAT.
You can farm your own.
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?
Yes, build your own
So your genius plan for avoid VAT is to basically abandon modern society. I’ll take the VAT, you do you.
Yes. You can take VAT and I’ll choose it too, but you can’t say it is mandatory
How do you buy the stuff to start farming? The land?
Creat it yourself. Find a piece of land without tax.
You have to pay for the land even if it’s untaxed, which will generate income which means you’ll be taxed?
