Heres my take on VAT & PRE-PAID phone cards. I have no problem paying a consumption imposed tax. What I do have a problem with is the consumer not provided with a transparent approach on what is actually VATABLE. Let me educate my fellow Bahamians. VAT is a consumption TAX that is charged during every stage of production and distribution each time a business in the supply chain purchases a product or service. Hence EVERYONE pays VAT on goods and services not just the consumers (or end consumers as we would call them). The thing is the END CONSUMER is the only one who cannot RECOVER the VAT taxes that they pay; which ultimately means that the only persons who are truly TAXED is the END CONSUMER (US). With that said, should the businesses charge VAT on pre-paid phone vouchers? My answer is, if they bought their minutes wholesale from the supplier and was charged VAT, are registered VAT businesses and are able to recoup VAT, by all means YES. Charge me the $5 top up plus VAT. Heck, charge me $5 (inclusive of VAT) and give me a top-up value of $4.65...whichever method you choose IM GOOD. My problem is, how the hell the SUPPLIER of the Goods/Service is going to charge the businessman (retailer) VAT on the PRE-PAID minutes they bought wholesale (which is going to be a cost transferred to the end consumer) and then charge the end consumer VAT AGAIN on the SAME MINUTES when they use it???? How many times is BTC going to charge VAT? If youre going to charge me VAT on my minutes when I purchased it, then I shouldnt be charged VAT to USE the minutes I ALREADY purchased!!! Who did I buy my minutes from BTC or the retailer? Where I purchase my goods/services is where I should pay my taxes am I not correct? For post-paid customers, arent they being charged VAT on their TOTAL monthly bill? Im sure theyre not being charged a monthly bill of $30 plus VAT and then charged VAT again as they use their minutes. VAT on overages or charges beyond their monthly plan.....ok that I understand. Cmon people!!! This is ridiculous! If I purchase my minutes from the retailer the retailer gets the VAT. If I purchase directly from BTC via online etc. BTC gets the VAT. Its that simple. Stop double dipping and killing the poor. How about someone talk about National Salary and Wages increases, PAYSCALES in accordance to the combination of qualifications, job title, duties and length of employment. IM JUST SAYING................................
Posted on: Sun, 04 Jan 2015 01:58:04 +0000
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