Protectionism in China - Something to Worry About [View article]
Sunnsea, please look at this again:
"The EU countries place a 20% VAT on all import goods into the zone. This is not called a "tariff" but it is a tax on imports. Their domestic producers do not pay VAT on exported products, so when ..."
But their domestic producers DO pay VAT on all their supplies and DO have to charge VAT to their customers, just like their competing importers. (what happens with their exported products is not relevant here)
In the EU markets, the importers and the domestic producers are treated equally, in accordance with WTO obligations. Neither can escape the VAT. This is why VAT is not a tariff.
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Sunnsea, please look at this again:
Jun 22 20:15 pm
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All Comments by TERN »Protectionism in China - Something to Worry About [View article]
"The EU countries place a 20% VAT on all import goods into the zone. This is not called a "tariff" but it is a tax on imports. Their domestic producers do not pay VAT on exported products, so when ..."
But their domestic producers DO pay VAT on all their supplies and DO have to charge VAT to their customers, just like their competing importers. (what happens with their exported products is not relevant here)
In the EU markets, the importers and the domestic producers are treated equally, in accordance with WTO obligations. Neither can escape the VAT.
This is why VAT is not a tariff.