Question about German VAT
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solarstorm
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« on: November 19, 2014, 12:08:07 PM »

As far as I know Germany imposes two different tax rates on goods and services.
For convenience goods Germans have to pay 7%, for luxury goods 19%.
The German exchequer collects value-added taxes in the amount of about € 150,000,000,000.
How much of that amount traces back to the reduced tax rate? Does anyone know?
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Tender Branson
Mark Warner 08
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« Reply #1 on: November 19, 2014, 12:22:56 PM »

The German exchequer collects value-added taxes in the amount of about € 150,000,000,000.

No, 200 Bio. €

How much of that amount traces back to the reduced tax rate? Does anyone know?

About 10 Bio. €
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solarstorm
solarstorm2012
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« Reply #2 on: November 19, 2014, 12:37:39 PM »

The German exchequer collects value-added taxes in the amount of about € 150,000,000,000.
No, 200 Bio. €

EU billion or US billion?

How much of that amount traces back to the reduced tax rate? Does anyone know?
About 10 Bio. €

Hence, a revenue-neutral harmonization of both VAT rates would predominantly hurt the poor?
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Tender Branson
Mark Warner 08
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« Reply #3 on: November 19, 2014, 12:48:09 PM »

The German exchequer collects value-added taxes in the amount of about € 150,000,000,000.
No, 200 Bio. €

EU billion or US billion?

Billions of €s. Germany collects 150 Bio. € of domestic VAT each year and 50 Bio. € of import-related VAT.

See "turnover tax".

https://www.destatis.de/EN/FactsFigures/SocietyState/PublicFinanceTaxes/Taxes/TaxBudgets/Tables/CashTaxRevenueMillionEuros.html

How much of that amount traces back to the reduced tax rate? Does anyone know?
About 10 Bio. €

Hence, a revenue-neutral harmonization of both VAT rates would predominantly hurt the poor?

Don't know, I'm no tax expert. But an increase in the reduced tax rate (which is used for groceries) would hurt poor people I guess, yeah.
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CrabCake
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« Reply #4 on: November 26, 2014, 06:29:46 PM »

Keep in mind that the EU carefully monitors individual members' tax rates to prevent a race to the bottom. Standard VAT cannot be reduced below 15%, so a standardisation could not cut the "luxury" VAT rate by too much.
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