Conversation:

now I know what that's all about

but one minor niggling detail:

Change

"a sales tax on goods that did not effect the cost"

to either

"a sales tax on goods that did not affect the cost"

or

"a sales tax on goods that had no effect on the cost"


Effect is a noun, affect is a verb!

(effect can be a verb, but in a different context, "to effect" would be to bring about a change)

Changed - thank you!

I agree - fab Entry!

Great stuff!! Not enough of the general population understand just how much they are paying in VAT. I'm convinced most think it is some form of business tax rather than a tax on consumption.

If I'm right in saying, peanuts are zero rated, but salted peanuts are Vatable. And ostrich eggs are now zero rated after a long battle through the tribunals.

I still fail to see why sanitary towels are Vatable - I'm sure many women would argue their necessity rather than being a luxury item!

Well done!!!

With effect from 01.01.01 VAT was charged at the reduced rate (5%) on women's sanitary products. This is the lowest rate of VAT that can be charged, the UK is no longer able to extend the scope of supplies cahrgeable to VAT at 0%.