Israel To Tax Foreign Companies' Online Activities

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I don't know what other countries collect when it comes to value added tax but seventeen percent sure seems like a lot. Especially when you consider that the 17% VAT would be on top of the income tax already being collected from these companies.

Israel is to start collecting value added tax (VAT) and income taxes from foreign companies that do substantial business over the Internet in Israel. Under new guidelines issued by the Israel Tax Authority on Monday, foreign companies that operate websites and sell various services such as advertising and brokerage will be subject to 17 percent VAT as well as income tax on their activities in Israel.
 
VATs are a way to try to encourage more accurate tax reporting and collection instead of having ridiculously high corporate taxes that companies just dodge.

We have a relatively low corporate tax rate in Canada and it still gets dodged by big companies like it was the 35+++% it is in the USA.

I think it's a case of anything more than nothing is too much.
 
VAT in Europe goes from 17% (Luxembourg) to 27% (Hungary). Lucky for us Finns we have "only" 24%.
 
The vision of Monty Python made manifest: "A tax on all foreigners living abroad"
 
VAT is a terrible, terrible tax. Some countries give it back to both companies and individuals, and some don't. Here in Bulgaria only bigger than mom and pop companies get their VAT back. Regular people are fucked with 20% on top of virtually everything, and I do mean everything, even life saving drugs. It's probably why so many luxury items are somehow company property even when they're clearly not.
 
Twisted Kidney said:
VATs are a way to try to encourage more accurate tax reporting and collection instead of having ridiculously high corporate taxes that companies just dodge.

We have a relatively low corporate tax rate in Canada and it still gets dodged by big companies like it was the 35+++% it is in the USA.

I think it's a case of anything more than nothing is too much.
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That 35% is what the corporate tax rate is in the US. It's way, way more than what any company with a competent accountant will actually end up paying. There are so many loopholes in the USA's broken tax code it's not funny.

The VAT in most countries doesn't tax (i.e. punish) the companies so much as it taxes the people of the country. Most companies get VAT taxes handed right back to them but the regular person? Nah, fuck them.
 
Dwango said:
That 35% is what the corporate tax rate is in the US. It's way, way more than what any company with a competent accountant will actually end up paying. There are so many loopholes in the USA's broken tax code it's not funny.

The VAT in most countries doesn't tax (i.e. punish) the companies so much as it taxes the people of the country. Most companies get VAT taxes handed right back to them but the regular person? Nah, fuck them.
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Yep, pretty much. Accurate reporting and collection of VATs is the best way to force the middle class to subsidise your corporate friends. But what the VAT system does is make the environment for small businesses a lot less punishing. I see what the people I do business with in the US pay and it makes me feel a great deal of pity for them. It takes a lot of resources to dodge taxes in the US, the only companies that can really dodge those whithering tax rates are the ones who can afford to lobby for loopholes. Little businesses pay close to double the tax rate that big corps pay in the US. They employ more people, they put more into the economy, they offer better jobs and better wages for employees, but they can't afford to lobby so they get fucked. Hard.

VATs are the better of two shitty systems. They all screw the middle class though, and the middle class has been under assault since the dawn of the Trickle Down in the 80s.
 
DF-1 said:
in b4 all the antisemites.

oh shit too late already.
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Being pissed off about APAC being one of the largest lobbies in the US, tax free, despite representing the interests of a foreign nation (which shouldn't even be allowed to influence American politics with money in the first place), and the US giving so much money every year to an industrialized nation with an economy on par with European nations doesn't make you anti-semetic.

http://www.twopeoplesonefuture.org/wp-content/uploads/2010/06/FMF-2010_Israel-v-Others_2.jpg
 
DF-1 said:
in b4 all the antisemites.

oh shit too late already.
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There is a pretty distinct separation between being Jewish and being an Israeli national. Not all Jews are Israeli and not all Israelis are Jews.

I would posit that the instantly accusing all the people who criticise Israeli policy of being anti-Semitic is an insult to analytical thought.
 
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