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2018 CT’s


bmar

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5 minutes ago, Ed Cesnalis said:

That's only true if the VAT doesn't apply.  When does it apply and how much is it?

149880 Euro or $178k with a 20% VAT.  Do US airplanes pay VAT, or only those destined for countries with a VAT?  Seems a very important question to price and overall competitiveness of the FD products.  There are a lot of US-based LSA in the $150-180k range that don't have the 20%  penalty for being Euro-born. 

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4 minutes ago, FlyingMonkey said:

149880 Euro or $178k with a 20% VAT.  Do US airplanes pay VAT, or only those destined for countries with a VAT?  Seems a very important question to price and overall competitiveness of the FD products.  There are a lot of US-based LSA in the $150-180k range that don't have the 20%  penalty for being Euro-born. 

Isn 't the VAT added incrementally a step at a time?  Doesn't that make it unavoidable, at least partially?

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9 minutes ago, Ed Cesnalis said:

Isn 't the VAT added incrementally a step at a time?  Doesn't that make it unavoidable, at least partially?

I believe that's correct, but the VAT is "baked in" to the price for all production steps prior to delivery.  The only real question for US buyers is whether the VAT on the completed airplane applies to delivery in a non-VAT country.  Having bought other items from overseas, I believe that it does.

Of all the awful forms of taxation, I think VAT might be the most insidious for economic growth.  It increases the cost of goods far beyond the actual listed tax rate, since the end consumer pays for the VAT applied to each stage of production.  Add income taxes on top of a VAT, which many nations do, and you are dooming all but the highest income citizens to poverty.

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20 minutes ago, FlyingMonkey said:

I believe that's correct, but the VAT is "baked in" to the price for all production steps prior to delivery.  The only real question for US buyers is whether the VAT on the completed airplane applies to delivery in a non-VAT country.  Having bought other items from overseas, I believe that it does.

Of all the awful forms of taxation, I think VAT might be the most insidious for economic growth.  It increases the cost of goods far beyond the actual listed tax rate, since the end consumer pays for the VAT applied to each stage of production.  Add income taxes on top of a VAT, which many nations do, and you are dooming all but the highest income citizens to poverty.

How will the VAT compare with the Chinese structure / burden?  Will Aero Jones survive an embargo on Chinese goods?

Seems like 2 sources could be a good thing?

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32 minutes ago, FlyingMonkey said:

Doug, I believe the SV700 screens are 7" Skyviews.

Correct.

And they work just fine.

That withstanding, the 10 inch displays are better, especially for older eyes. Unfortunately, my panel did not have the real estate to support the 10 inch Skyviews, otherwise I would have installed them.

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  • 3 weeks later...

VAT (Value Added Tax) is a tax that is added basically on every purchase of goods or services in EU. It varies among the countries but it would be roughly 20% +/- a few percent depending on where you live. It does not apply to exporting purchased goods (will be refunded) in case you buy goods in EU and export it as a private person. In this case it would mean buying the plane from a distributor in Europe, registering the callsign in the country of purchase and bringing it abroad (does not make too much sense to me). I believe you need to look at US distributor and US price.

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VAT is basically sales tax, but with a twist. When something is produced, the VAT is applied for that local area. If the product is moved to another locality and sold at a higher price, then the difference is to be paid.

It does make for more paperwork, but it's also much harder for people to dodge the tax. It has built in checks. Besides, with computerization, VAT is practically automated.

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