Which disadvantage of the Value Added Tax VAT is most likely to be cited by people with low incomes?

Which disadvantage of the Value Added Tax VAT is most likely to be cited by people with low incomes?

Which disadvantage of the value-added tax (VAT) is most likely to be cited by people with low incomes? As a consumption tax, everyone pays the same amount, regardless of ability to pay. Read the scenario.

Which of the following is a disadvantage of a flat tax *?

The Downside of a Flat Tax Opponents argue that a flat tax system would transfer the tax burden to lower-income and middle-income taxpayers. A flat tax could also eliminate altogether some taxes that wealthier individuals tend to pay, such as capital gains, dividends, and interest income taxes.

What are some advantages of a value added tax quizlet?

Perhaps the biggest benefit of a value added tax is its potential to increase revenues. One of the disadvantages of a value added tax is the burden it places on lower income families. balance the federal budget.

How does a flat tax differ from a value added tax VAT )?

A flat tax and a value-added tax are two common tax systems used in industrialized countries. A flat tax is simply a single percentage rate applied to everyone’s income, while a VAT is charged by item or service.

Who pays value added tax?

VAT is assessed and collected on the value of goods or services that have been provided every time there is a transaction (sale/purchase). The seller charges VAT to the buyer, and the seller pays this VAT to the government.

How can you be exempt from paying VAT?

There are some goods and services on which VAT is not charged, including:

1. insurance, finance and credit.
2. education and training.
3. fundraising events by charities.
4. subscriptions to membership organisations.
5. selling, leasing and letting of commercial land and buildings – this exemption can be waived.

What is the benefit of tax exemption?

A tax exemption, as most taxpayers experience it, is the right to subtract some portion of income or some amount of money from top-line income. That income is ignored, so the taxes owed are reduced.

How do I get a BIR tax exemption certificate?

Requirements for BIR certificate of tax exemption.

1. A notarized affidavit of non-filing of ITR/no income/as OFW from a notary public (must include details such as the source of income [if any], the reason for non-filing of ITR, and purpose of the certification)
2. Barangay Clearance or Barangay Certificate of Indigency.

Who is eligible for medical exemption certificate?

Exemption certificates

• people with certain medical conditions (medical exemption certificates)
• pregnant women and those who have had a baby in the last 12 months (maternity exemption certificates)
• people who receive certain tax credits and have a low household income (NHS tax credit exemption certificates)

What are the exemptions for prescriptions?

Some groups are automatically entitled to free NHS prescriptions. Others can apply for certificates that entitle them to free NHS prescriptions….Tax credits

• Child Tax Credit.
• Working Tax Credit and Child Tax Credit paid together.
• Working Tax Credit including a disability element.

How do I know if I am entitled to NHS exemption?

You’re automatically entitled to free NHS prescriptions and NHS dental treatment if you are: under 16. 16, 17 or 18 and in full time education. getting certain benefits (Opens in a new tab) or you’re named on the claim as a partner or child.

How long does it take to get medical exemption certificate?

You should expect to receive your Medical exemption certificate within 10 working days of us receiving your FP92a application form. Check what help you could get to pay for NHS costs and apply online.

When can you get free prescriptions?

Everyone aged over 60 gets free prescriptions. If you’re under 60 you can save money on prescriptions by buying prescription prepayment certificates from the NHS for 3 months or 12 months. This covers all your prescriptions for that period, regardless of how many you need.

Are prescriptions free on universal credit?

Free prescriptions are on Universal Credit, Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance or the guarantee credit part of Pension Credit. Your partner and children will also be entitled to free prescriptions if they are included in your benefit award.

Is prescription prepayment certificate valid?

If you prefer talking to someone, you can call the PPC order line on 0300 330 1341. Your certificate will be valid from the day you make the phone call, unless you request otherwise.

How does a prescription prepayment certificate work?

A PPC lets you get as many NHS prescriptions as you need for a set price. If you regularly pay prescription charges, a PPC could save you money. The prescription charge in England is £9.35 per item.

Can I cancel my prescription prepayment certificate?

Your PPC cannot be cancelled once you have used it to claim free NHS prescriptions.

How much is a prepayment certificate?

You can only get a PPC if you live in England. A 3 or 12 month PPC covers all your prescriptions for that period, no matter how many you need. A prescription costs £9.35 per item, but a PPC costs: £30.25 for 3 months.