VAT Beauty

It reminds me of a gag from the commune period. The first secretary of the organization announcing the authoritative increase in food prices by 50% adds with a grin that at the same time by 2% locomotives. Then there will be no harm. But the VAT regulations announced by the current government are not a joke, unfortunately they are not a primaaprilis gag either, although the omen nomen has been in force since 1 April. And it is not even that the life is “a good of fundamental social and economical importance” and beauty salons supply crucial services, but not comparable to food. The simplification of VAT to the end service in the value chain is the repeal of the taxation gate for fraud and criminal-tax offences.

Let us remind at the outset what VAT is. VAT is an indirect tax, a value added taxation Value Added Tax), ‘whose plan assumes no cascading taxation overlap by applying the taxation deduction mechanics collected in erstwhile marketing stages’. Therefore, the ‘Beauty’ service supplier pays VAT on the service provided, little VAT paid at the phase of the cost of the service. Let's take a look at what it's like so far, and what it looks like after a taxation reduction. say the cost of the service was net PLN 100 and the net price was set with a fair 20-percent profit of net PLN 120. The VAT settlement looks like this:

Before taxation simplification – VAT = 23%

Net service PLN 120 + 23% VAT = gross PLN 147.6; net cost PLN 100 + 23% VAT = gross PLN 123

The entrepreneur deducts from the amount of PLN 27,6 VAT due the amount of PLN 23 VAT already paid in costs

Entrepreneur budget countries pays the amount4.6 zł

After taxation simplification – VAT = 8%

Net service PLN 120 + 8% VAT = gross PLN 129.6; net cost PLN 100 + 23% VAT = gross PLN 123

The entrepreneur deducts from the amount of PLN 9,6 VAT due the amount of PLN 23 VAT already paid in costs

Entrepreneur from the budget countries receivedreimbursement of overpayment of PLN 13.4

This is of course the natural effect of reducing the VAT rate for services rendered. But, yeah, but. In this way, the gateway to abuse and crime is avoided. In the case of VAT for services equal to or higher than VAT for the costs incurred, it is practically impossible to make an excess payment and the corresponding reimbursement of VAT from the state budget. Costs would should be higher than the price, i.e. the activity would be loss-making, which would not only make economical sense but would prompt suspicions to the taxation Office. In the reverse situation, and this is the case at present, the lower VAT rate for VAT services for the costs incurred results in the economical activity generating the profits of the State paying the entrepreneur the negative difference in VAT. This is simply a temptation for unfair entrepreneurs to manipulate the costs and sales of services in specified a way as to get the highest possible VAT refund from the state budget. The practice is to issue ‘left’ invoices only to ‘pull’ out of the state budget as much as possible. I have written in practice due to the fact that this is precisely what the Vatov mafias have done utilizing the rules on settlement of transactions between entities from different EU countries on the basis of zero VAT invoices. The introduction by the European Union of this diseased, pathological provision (zero VAT in the accounts of entrepreneurs from different EU countries) has led in many countries to massive extortions of money from state budgets. It is estimated that in Poland before 2015 the Vatowski mafias brought out about PLN 250 billion from the budget. At the time, global criminal structures had to be created, as the base for theft was fictitious settlements between entities from different countries. Now, thanks to the decision of Donald Tusk's government, Polish mafias will be able to milk the budget of the Polish state without having to cooperate with criminals from another countries. Especially since the beauty manufacture is peculiarly susceptible to this kind of manipulation – who will prove that baths in hectolitres of beer or champagne covered 23% VAT does not benefit beauty?

Of course, it can be considered that the decision of the current government is simply a natural support of the cosmetic manufacture limping after a pandemic period, and that illegal actions are not the work of the government, but of a criminal who commits theft. But The function of government, the function of parliament, is to make laws that prevent crime and not those that animated it.. The governments of the United Right over 8 years of power sealed the state budget and eliminated the top pathologies. As a result, despite the simplification in any taxes, the state budget doubled during this period. Money began to go to society alternatively of the mob. Multi-children were assisted, invested in the economy, roads were built and rail connections were rebuilt. We could afford to undertake specified investments as digging up the Wiślana Mierze, building the CPK or yet investing in arms and expanding the size of the Polish army.

As shortly as a fewer months after taking power, the government under 8 stars with its decisions weakened the country's defence by repealing the aggressors from the east of the Brzeska Gate, weakened its economy by its decisions repealing criminals' gates to extort large-scale money. The Polish economy is being dismantled, before our eyes the demolition of our country is being carried out. Whether Poles forget about their safety or forget about their money, or settle for relief on Beauty.

Mr Bogdan