Microchip as a company - my experiences

[Funny NYPD]

What if the buyer is not an individual consumer, e.g. an industry user, or a company, will the company also pay this VAT?

I heard some country only charge the VAT to the individual consumers.

 

[picbits]

Everyone (well almost) in the UK pays VAT.

Those who are eligible to do so can claim it back from the Government with their yearly VAT return (generally companies turning over around £58k or more).

 

[Nigel Goodwin]

What if the buyer is not an individual consumer, e.g. an industry user, or a company, will the company also pay this VAT?

Everyone has to pay it, companies as well, but a VAT registered company can claim the VAT back - there's a famous (and true) example of it!.

A lumberjack company chops down trees, and sells to a sawmill, the sawmill pays VAT to the lumberjacks, who pass it on to the VAT office. The sawmill then claims the VAT back.

The sawmill saws the wood and sells it to a pulp mill - VAT is paid and claimed back again.

The pulpmill sells the pulp to a paper factory - again VAT is charged and claimed back.

The paper factory makes the pulp into paper, and sells it to a bag manufacturer - VAT is paid and reclaimed.

The bag manufacturer makes it into paper bags, and sells them to shops - VAT is paid and claimed back by the shop keeper.

The shop keeper then gives the paper bag away, with apples or something inside it, as it's given away there's no VAT.

So all that money has gone back and forth, and it ends with not a penny been paid in VAT

 

[Leftyretro]

Everyone has to pay it, companies as well, but a VAT registered company can claim the VAT back - there's a famous (and true) example of it!.

A lumberjack company chops down trees, and sells to a sawmill, the sawmill pays VAT to the lumberjacks, who pass it on to the VAT office. The sawmill then claims the VAT back.

The sawmill saws the wood and sells it to a pulp mill - VAT is paid and claimed back again.

The pulpmill sells the pulp to a paper factory - again VAT is charged and claimed back.

The paper factory makes the pulp into paper, and sells it to a bag manufacturer - VAT is paid and reclaimed.

The bag manufacturer makes it into paper bags, and sells them to shops - VAT is paid and claimed back by the shop keeper.

The shop keeper then gives the paper bag away, with apples or something inside it, as it's given away there's no VAT.

So all that money has gone back and forth, and it ends with not a penny been paid in VAT

That is an interesting example, but I'm sure it must be the exception. Generally things in commerce aren't given away to the end consumer and I assume the end consumer of most transations doesn't get to claim a refund for the VAT portion of s/he's purchase?

I have always agreed with the proposition that business never really pay taxes in the long run, those that can't be deducted are just passed onto the the end consumer as part of the costs of the product or service. The people always are the end source of revenue either in direct taxes or indirect taxes (price increases).

Lefty

 

[3v0]

So all that money has gone back and forth, and it ends with not a penny been paid in VAT

The government handled the money at least 5 times. That required government workers with salaries, pensions, equipment, office buildings, and etc. None of these are free. They are paid for with taxes. How much does each paper bag cost the tax payer ?

 

[Funny NYPD]

That's a low efficient tax system.
The only benefit I can see is: it creates many job opportunities in the company and government structure.

This could lead to wasting Human resources from economy point of view. Especially when the population is growing slowly.

 

[picbits]

The money only gets declared to the Government (in bulk) once a year.

As someone who was previously VAT registered it was one of the easiest fairest returns to file.

Almost as easy as "Vat Paid" vs "Vat Charged"

If only the self-assesment forms were that easy. My last Tax return spanned over 100 pages of calculations .........

 

[Funny NYPD]

100 pages? You must be kidding.

 

[picbits]

Nope

When you fill out the self assesment forms you also get something like 20-30 pages to fill out. Then you have the calculation sheets for working out your final tax.

If you have any kind of "out of the normal" income such as trust payments you need to do the complicated form.

All in all, last years tax return amounted to around 100 pages of filling out rubbish (not all of them relevant but stuff still needed to be carried over)

 

[David James]

The money only gets declared to the Government (in bulk) once a year.

The companies that I know in sufficient detail to be sure make their VAT returns quarterly. One of them is a farming business most of whose outputs are zero-rated so they are always claiming VAT back from the authorities. Maybe there's an option to make returns annually or quarterly.

 

[BaCaRdi]

You know I posted already about Microchip, but I just had something happen so I figure I share it.

I purchased some stuff off of their Direct site, including a PICKit2. Well there was a problem with my credit-card, as everyone knows their PICKit2s go really fast. They not only reserved me one, but they shipped it next day air!

Now that is class!

-BaC

 

[picbits]

The companies that I know in sufficient detail to be sure make their VAT returns quarterly. One of them is a farming business most of whose outputs are zero-rated so they are always claiming VAT back from the authorities. Maybe there's an option to make returns annually or quarterly.

It might be quarterly - its been many many years since I was last VAT registered.

All I remember about it was how easy it was to work it all out and file the return compared to the Self Assesment return.

 

[atferrari]

Too much blah blah blah /writing manuals the right way

First

I heartedly agree and very closely behind them in that comes Myke Predko who can't even keep a working e-mail it seems let alone writer a book without using 2 X the necesary words

His verbal diarrhea is incredible. I abandoned the idea of reading his book. I don't like anyone wasting my time like that!

Second
I personally don't care manual being long to ready, as long they have something to say. (They have, in fact).

Two things I do not like: awful errors (not simple mistakes) like in the 18F4550's manual where the registers shown in the window specific for CAN are wrongly explained (had to require a full ticket from them to get it right)
and
The way some things are expressed: in technical matters you should try to write things always in an assertive way, giving all the details for a point to be undesrtood without rising new doubts.

Go to the micrcohip forum and look how many questions arise from the interpretation of the manual's texts.

 

[Nigel Goodwin]

That is an interesting example, but I'm sure it must be the exception. Generally things in commerce aren't given away to the end consumer and I assume the end consumer of most transations doesn't get to claim a refund for the VAT portion of s/he's purchase?

It's an extreme example, but it does happen - as already mentioned, most of the payments and claimbacks on only on paper, and balanced when the VAT returns are sent in.

Unless you're a business, and VAT registered, you pay the VAT and the government keeps it.

I have always agreed with the proposition that business never really pay taxes in the long run, those that can't be deducted are just passed onto the the end consumer as part of the costs of the product or service. The people always are the end source of revenue either in direct taxes or indirect taxes (price increases).

Yes, the end consumer is the one who pays.

 

[mvs sarma]

Everyone has to pay it, companies as well, but a VAT registered company can claim the VAT back - there's a famous (and true) example of it!.

A lumberjack company chops down trees, and sells to a sawmill, the sawmill pays VAT to the lumberjacks, who pass it on to the VAT office. The sawmill then claims the VAT back.

.........

The bag manufacturer makes it into paper bags, and sells them to shops - VAT is paid and claimed back by the shop keeper.

The shop keeper then gives the paper bag away, with apples or something inside it, as it's given away there's no VAT.

So all that money has gone back and forth, and it ends with not a penny been paid in VAT

I understand that the chain should stop above the shop keeper. as the shop keeper is not selling, he might become the end user and he has to buffer the VAT from his profits. he should logically be the end user, whether he uses ( giving away could be considered as usage.)

Perhaps it won't even pay for the maintenance and power supply of the computers in service of VAT and the employees salaries, I fear.

 

[TiagoSilva]

Last time I checked Thailand was definitely outside the EU and so I'm sure import duty and VAT would apply.

Is there any EU country that has VAT at 30%? Here in Aus we have GST (goods and services tax = VAT) at 10% that was introduced about 6 or 7 years ago and everyone is shocked when I tell them it 17.5% in the UK.

Mike.

LoOl tell them about my country, Portugal ! here you pay 21% of I.V.A. wich is the same thing as V.A.T., even the same translated name !
The stupid part is that UK wages are far, faaaaaaaar bigger than here... I guess Portugal is the most or one of the most expensive tax charging countrys...

How do we live here ? ... Who knows...
And to add to the fun, we have poor social services, we pay the hospitals and all health stuff, even having a bad public social service system we are obliged by law to pay the respective taxes !!!
And here retirement is at the 65 years lol

Portugal ! The place to live !

 

[TiagoSilva]

About the topic, i'm very satisfied with them, they are very interested on their customers and have a very fast samples delivery system.

Nothing bad to say !

 

[Thunderchild]

well the one thing i hate is a compoany that waits until the last page to inform you of VAT most reasonable companies claim immediately if the price is with or without VAT and how much it is, most require and order of just 15 £ for free handling and its the first time I hear of a huge company that sends out stuff one by one half way round the globe but then we pay for that so they don't care stuff can be shipped to the UK and redistributed from a UK warehouse that must be cheaper than using a curriors from tailand to the UK for one little item

 

[mvs sarma]

well the one thing i hate is a compoany that waits until the last page to inform you of VAT most reasonable companies claim immediately if the price is with or without VAT and how much it is, most require and order of just 15 £ for free handling and its the first time I hear of a huge company that sends out stuff one by one half way round the globe but then we pay for that so they don't care stuff can be shipped to the UK and redistributed from a UK warehouse that must be cheaper than using a curriors from tailand to the UK for one little item

Yes. Thunderchild,

Similar things happen in India too . I do remember M/sRS Components&Controls and few others do it. One more issue. If the company gets an item from far est to UK (case of RSComponents)and then sends to India, they could well average the last year or two needs of India and ship them to India direct from far east or the original source. This would reduce the transport burden, thus helps to sell it cheaper.

Hobbyists and few R&D centres get the material as they are of assured quality.

 

[Nigel Goodwin]

well the one thing i hate is a compoany that waits until the last page to inform you of VAT most reasonable companies claim immediately if the price is with or without VAT

Like I said before, the entire fault here is YOUR'S, you're ordering commercial parts which are always shown as less VAT, as businesses don't pay the VAT. If you order domestic items these are always shown inclusive of VAT, and are legally obliged to do so - and you don't mess with the VAT office!.