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Shop Local And Buy Manx - Beat The Vat Black Hole!


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Probably a daft idea, but couldn't IOMG set up some sort of automated internet portal/agency system whereby any online purchases go through it and remit payment to it, rather than direct to the actual supplier?

 

I'm not sure how the input/output VAT would work if that portal then remitted consolidated funds to the actual UK supplier...but it feels as though there could be a benefit to the IOM somewhere in the concept. It's only a kernel of an idea, but you accountancy types could maybe think it through?

Payment is actually registered where the person selling does the transaction, and it's the seller who has to register and process the VAT where his business is. An example, if you were in France on holiday, phoning the island and using your credit card to order a bunch of flowers from Robinsons for delivery for your mums birthday...you wouldn't expect the VAT to go to the French government would you?

 

Shop local is fine...but quite simply people are not going to do it if they can order the same thing across for half the price. Anyone that thinks otherwise is delusional IMO.

 

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Edited by Albert Tatlock
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The only surefire way of keeping money in the island is to drop out of the VAT network altogether (which would have serious implications for our international business) and introducing a high import duty. Under this kind of arrangement, everything imported from anywhere — businesses acquiring stock, individuals bringing back purchases from overseas trips, people buying online from Amazon or HMV — is subject to an import charge at 20% or so. This type of taxation is hugely profitable — import duty is the only real tax funding the Cayman Islands government as well as a couple of other British Overseas Territories, and it's the mainstay of the Bermuda economy.

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Shop local is fine...but quite simply people are not going to do it if they can order the same thing across for half the price.

Just a thought on this Albert and to all others who can answer;

Could there be some other outlet like Amazon be created in the IOM and would it be in a better position for tax purposes or would it be a straight loser due to its geographical position?

(I joined the thread late and too lazy to read the back entries)

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Shop local is fine...but quite simply people are not going to do it if they can order the same thing across for half the price.

Just a thought on this Albert and to all others who can answer;

Could there be some other outlet like Amazon be created in the IOM and would it be in a better position for tax purposes or would it be a straight loser due to its geographical position?

(I joined the thread late and too lazy to read the back entries)

Play.com is based in Jersey!

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Shop local is fine...but quite simply people are not going to do it if they can order the same thing across for half the price.

Just a thought on this Albert and to all others who can answer;

Could there be some other outlet like Amazon be created in the IOM and would it be in a better position for tax purposes or would it be a straight loser due to its geographical position?

(I joined the thread late and too lazy to read the back entries)

Our postage is cheaper, but shipping stock here would be expensive and pointless. Books etc. could be warehoused in the UK (or anywhere) and a call centre/web site could be operated easily from here I would have thought.

 

The fundamental problem we have is the cut in our income of £140M due to the change in the share 'agreement'. We can always get more businesses and people here, but it will take another 50% of the workers that we have now to actually recoup that kind of money really. Why? Because you'd have to spend half of any additional money you generated straight away on additional health, education, infrastructure etc. simply to accomodate the extra businesses/people.

 

So in my book, it's the relationship with the UK that needs to be tackled here.

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Shop Local OK.

Does this mean the only supermarket we should all be using should be shoprite ?

 

If a local shop can provide the range and quality, as well as price, that the likes of M&S and Tesco can then yes.......but I highly doubt Shoprite can do this as their quality and range is diabolical.....

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If a local shop can provide the range and quality, as well as price, that the likes of M&S and Tesco can then yes.......but I highly doubt Shoprite can do this as their quality and range is diabolical.....

 

What if it turns out that using Shoprite really actually matters to the economy ? Then you would use it more right?

 

I've been thinking about this. I don't think we can expect Shoprite to be as good as Tesco. Obvious really. But I think it's worth supporting. Especially if it turns out that it matters.

 

Still going to get my socks and pants from M&S for the moment though :)

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We need to give Amazon, Dabs etc a huge warehouse for nothing, and get them over here to provide online shopping -

 

Amazon.co.iom for the win.

 

This is certainly something that we could do if we were outside the UK VAT area. We could have a domestic rate of VAT of 22.5% (with exceptions for necessities) and low value exports would, as now with companies like Amazon Jersey, and 7-Day Shop, attract no VAT going into the UK.

 

S

 

It could potentially work but it might cripple the Manx economy!

 

We would collect little VAT as the only VAT collected would be in effect what Manx businesses sent to Manx consumers. This is because anything else would be an export and therefore zero rated. How much would then be bought locally I am not sure with prices 5% higher in the IoM assuming a VAT rate of 17.5%. Potentially you would need some very diligent customs officers at the ports depending on the level of allowances with regard to importing goods.

 

We would collect VAT on every single thing imported into the island. With perhaps a minimum payment of £10.00 to encourage people to buy local.

 

But the point about hosting Amazon here is not to collect VAT from them. It's to have some local jobs.

 

S

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Sorry, Sebrof, I don't understand the import thing and VAT. Also, how would you deal with the import which would most likely have hit a UK port first. I know there are provisions for transhipment (probably simultaneous import/export). I just don't know enough about those things to figure out whether or not it is a good idea.

 

However, what is clear, I would have thought, is that if we terminate the custom agreement, then it is all about collecting VAT. Of course jobs are important, but if we want to preserve the corporate nil/low tax rate there has to be some mechanism for the IOM to benefit from the turnover going through local companies and that can only be, otherwise, through VAT.

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We need to give Amazon, Dabs etc a huge warehouse for nothing, and get them over here to provide online shopping -

 

Amazon.co.iom for the win.

 

This is certainly something that we could do if we were outside the UK VAT area. We could have a domestic rate of VAT of 22.5% (with exceptions for necessities) and low value exports would, as now with companies like Amazon Jersey, and 7-Day Shop, attract no VAT going into the UK.

 

S

 

It could potentially work but it might cripple the Manx economy!

 

We would collect little VAT as the only VAT collected would be in effect what Manx businesses sent to Manx consumers. This is because anything else would be an export and therefore zero rated. How much would then be bought locally I am not sure with prices 5% higher in the IoM assuming a VAT rate of 17.5%. Potentially you would need some very diligent customs officers at the ports depending on the level of allowances with regard to importing goods.

 

We would collect VAT on every single thing imported into the island. With perhaps a minimum payment of £10.00 to encourage people to buy local.

 

But the point about hosting Amazon here is not to collect VAT from them. It's to have some local jobs.

 

S

 

Just one little thing. how much stuff is made local,

apart from food 99% of everything eles is imported into the island,

so it wont matter if you buy it local cause thay will have paid the import tax or what ever it is your saying, the same tax that would be on if you brought on the net,

so really it dont mean anything.

 

unless im missing the point, which i could well be at this time of night :huh:

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We need to give Amazon, Dabs etc a huge warehouse for nothing, and get them over here to provide online shopping -

 

Amazon.co.iom for the win.

 

This is certainly something that we could do if we were outside the UK VAT area. We could have a domestic rate of VAT of 22.5% (with exceptions for necessities) and low value exports would, as now with companies like Amazon Jersey, and 7-Day Shop, attract no VAT going into the UK.

 

S

 

It could potentially work but it might cripple the Manx economy!

 

We would collect little VAT as the only VAT collected would be in effect what Manx businesses sent to Manx consumers. This is because anything else would be an export and therefore zero rated. How much would then be bought locally I am not sure with prices 5% higher in the IoM assuming a VAT rate of 17.5%. Potentially you would need some very diligent customs officers at the ports depending on the level of allowances with regard to importing goods.

 

We would collect VAT on every single thing imported into the island. With perhaps a minimum payment of £10.00 to encourage people to buy local.

 

But the point about hosting Amazon here is not to collect VAT from them. It's to have some local jobs.

 

S

 

Just one little thing. how much stuff is made local,

apart from food 99% of everything eles is imported into the island,

so it wont matter if you buy it local cause thay will have paid the import tax or what ever it is your saying, the same tax that would be on if you brought on the net,

so really it dont mean anything.

 

unless im missing the point, which i could well be at this time of night :huh:

I thought same as you gazza - most of the stuff on the shelves in shoprite comes from across anyway. I understand that profits made by shoprite are more likley to be retained on island etc but does anybody know what shoprites profits are like? granted they do employ more staff on island (i think).

 

I use shoprite a bit but i do prefer tesco overall and wont change my shopping habits as I feel i get more value when i shop in tesco.

 

Buying local is ag reat idea, but if my taxes go up I will be looking to make savings. I will eat cheaper red meat (mince) and probably more chicken as its always on offer.

 

I will buy UK spuds as they are cheaper and washed

 

I will continue to buy manx cheese as its nice, not sure about milk yet.

 

I am very worried about tax increases etc, i am a middel of the road wage earner with kids, I feel I am the demographic that is always targeted when cut backs are made.

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