The extreme ignorance of Oxfam

the financial sector, which has
been under-taxed (indeed the financial sector does not
pay Value Added Tax).

Err, yes, the financial sector does pay VAT. It pays VAT on al of its vattable inputs.

The financial sector does not charge VAT to its customers: this means that the financial sector cannot claim back the VAT they have pid on their inputs.

3 thoughts on “The extreme ignorance of Oxfam”

  1. ‘Sactly

    Banks pay the full amount of VAT as an expense. They cannot deduct the earlier part of the VAT chain from what they pay to suppliers.

    But your wasting your time Tim. They are guilty of all evil, even when they are not.

    Slightly O/T but not really, same style as
    EF Take back the Flour (Go on look them up)

    Then check out their ‘enemies’ at Rothamsted experimental station

    and tell me: Who do you want taking decisions on scientific research?

  2. There’s a very odd anomaly here. A bank offering a commercial mortgage requires a ‘Red Book’ valuation. This will bear VAT. The bank requires the borrower to pay them for the valuation, they pay the valuer and reclaim the VAT. The borrower cannot claim the VAT, in spite of the fact that he had to pay the bank the fee plus VAT. The bank will not issue an invoice, so the borrower cannot reclaim the fee as an expense. Discuss.

  3. Nick,

    The bank cannot reclaim the VAT. They are not able to reclaim VAT on inputs, as Tim explained. The bank in this case has simply acted as an intermediary and the only gainer is HMRC.

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