Are solar panel installs now free ?

[PBC_1966]

Wasn't the 100% purchase tax a temporary war-time measure? I believe it settled at 33.33% after the war for luxury goods, and was later reduced to 25%.

In the early days of VAT there was also the 8% standard rate and the 12.5% luxury rate, which at one point was increased to 25% for a while. There was also a ridiculous situation in which an attempt was made to apply a different rate depending upon the intended use of an item, e.g. buy a replacement capacitor for a piece of essential office equipment and it was standard rate, by the same capacitor for your domestic TV set and it was "luxury" rate. How they ever thought that would work I have no idea!

Re food, as I understand it the U.K. and Ireland are the only two EU countries which don't tax it, and was how the zero-rated category came into existence. It wasn't exempt under the (then) EEC VAT rules, but there was nothing to stop them making it taxable but with a rate of zero percent! Last I heard, the EU was still kicking up a fuss about how "unfair" that supposedly is.

But back to solar, the installations I've seen around this area generally use net metering and PG&E credits the customer for anything fed back into the grid. On the lease scheme at the house we were looking at, the solar company also had its own separate meter indicating energy output from the inverters.

 

[JohnW2]

Wasn't the 100% purchase tax a temporary war-time measure? I believe it settled at 33.33% after the war for luxury goods, and was later reduced to 25%.

It didn't stay at the immediate post-war (1946) 'reduced figure' of 33.33% for long - it rose again to 50% in 1947 and to 66.67% in 1948. It jumped about a lot, but throughout the 50's and into the early 60's it was in the range 50% - 66.66%. Indeed, even in 1971, just a couple of years before being replaced by VAT (at an initial rate of 10%), it was 45%.

In the early days of VAT there was also the 8% standard rate and the 12.5% luxury rate, which at one point was increased to 25% for a while. There was also a ridiculous situation in which an attempt was made to apply a different rate depending upon the intended use of an item, e.g. buy a replacement capacitor for a piece of essential office equipment and it was standard rate, by the same capacitor for your domestic TV set and it was "luxury" rate. How they ever thought that would work I have no idea!

There's still a little of that. For example, the much-reduced rates for fuel relate generally relate only to domestic usage - which causes difficulties when one building, with common heating etc. contains both a shop and residential accommodation.

Re food, as I understand it the U.K. and Ireland are the only two EU countries which don't tax it, and was how the zero-rated category came into existence. It wasn't exempt under the (then) EEC VAT rules, but there was nothing to stop them making it taxable but with a rate of zero percent! Last I heard, the EU was still kicking up a fuss about how "unfair" that supposedly is.

Maybe. In fact, most of the things we've been talking about (food, children's clothing, books) are 'zero rated', rather than 'exempt' - and that's a great advantage to the suppliers. AIUI, when the goods they sell are 'zero rated', they are able to reclaim any VAT they pay on ingredients/ materials/ components/ whatever - but if they sell 'exempt' goods they are not able to reclaim any of that VAT.

KInd Regards, John

 

[ban-all-sheds]

Most people here are shocked when told about 20% VAT in the U.K. though.

Most people here are shocked that one of the richest countries in the world has such appalling healthcare provision. And that the population want regular massacres of schoolchildren to happen.

There are numerous other exemptions for goods as well, e.g. feed for livestock, prescription drugs

How much does aspirin cost over there?

 

[JohnW2]

How much does aspirin cost over there?

An awful lot less than a UK NHS ("free at the point of delivery") prescription charge, I would imagine

Kind Regards, John

 

[stillp]

How much does aspirin cost over there?

An awful lot less than a UK NHS ("free at the point of delivery") prescription charge, I would imagine

Kind Regards, John

Same as the UK then!

 

[EFLImpudence]

28p for 16 in Tesco.

 

[JohnW2]

Same as the UK then!

Quite - provided one keeps well clear of NHS prescriptions. Of course, that option does not exist for prescription-only medicines.

Kind Regards, John

 

[ban-all-sheds]

http://www.amazon.com/Bayer-Aspirin-Pain-Reliever-325Mg/dp/B001KUVUK8

 

[ban-all-sheds]

Of course, that option does not exist for prescription-only medicines.

Worth checking though if anything you've been prescribed is a POM.

 

[PBC_1966]

There's still a little of that. For example, the much-reduced rates for fuel relate generally relate only to domestic usage - which causes difficulties when one building, with common heating etc. contains both a shop and residential accommodation.

Good point. And an item can be taxable by itself, but non-taxable when sold as part of some completed product (e.g. buy paper and a ring binder and they're taxable as stationery; put them together as a loose-leaf publication and they're zero-rated as a book).

In fact, most of the things we've been talking about (food, children's clothing, books) are 'zero rated', rather than 'exempt' - and that's a great advantage to the suppliers. AIUI, when the goods they sell are 'zero rated', they are able to reclaim any VAT they pay on ingredients/ materials/ components/ whatever - but if they sell 'exempt' goods they are not able to reclaim any of that VAT.

Yes, that's the important difference, again because of the European-wide VAT rules. So a company selling o only, say, insurance can't reclaim VAT on expenses because insurance services are VAT exempt. But the grocery store selling food can reclaim everything, because (most) food is zero rated. I was VAT registered years ago, and it was complex enough wading through just the guides I had which related to my particular activities. The full details covering everything must be absolutely mind-boggling!

Most people here are shocked that one of the richest countries in the world has such appalling healthcare provision.

Well, that's getting well away from the original topic, but I think much criticism can (and has) been leveled at the NHS over the years as well. Swings and roundabouts.....

And that the population want regular massacres of schoolchildren to happen.

And really getting away from the topic, but of course we all know that such a thing could never happen in the United Kingdom. right?

How much does aspirin cost over there?

http://www.walgreens.com/search/results.jsp?Ntt=aspirin

 

[JohnW2]

28p for 16 in Tesco.

Indeed, and nearly all of that price is attributable to packaging, and distribution etc. The bulk price of aspirin tablets is close to zero (hence not really a 'money spinner' for the pharmaceutical companies!).

Kind Regards, John

 

[ban-all-sheds]

Well, that's getting well away from the original topic, but I think much criticism can (and has) been leveled at the NHS over the years as well.

Indeed. But we don't have millions of people with virtually no access to healthcare.

And really getting away from the topic, but of course we all know that such a thing could never happen in the United Kingdom. right?

Indeed #2.

But what happened after that?

The US people do not want to do anything to stop theirs happening over and over again.

 

[stillp]

Sadly, I can report from personal experience that the USA has excellent healthcare facilities. Far from free though. I left hospital with a prescription for 3 items, which cost me over $700 for a month's supply. I saw some of the invoices on their way to my insurers, and the costs were shocking. Luckily I was working, so covered by the company travel insurance.

 

[JohnW2]

Worth checking though if anything you've been prescribed is a POM.

I don't know whether it's ever been implemented, but it's often been suggested that pharmacists should be obliged to advise customers if the OTC cost of non-POMs would be appreciably cheaper than the NHS prescription charge.

Of course, something like 80% of all dispensed NHS prescription items are, anyway, exempt from prescription charges - which are only paid by those between 18 and 60 who aren't pregnant, don't have chronic diseases or cancer and who aren't receiving certain welfare benefits.

Kind Regards, John

 

[stillp]

My GP used to refuse to prescribe anything that was cheaper to buy than the prescription charge.