Can I ask Starbucks to remove the VAT on my food and drink - as it is fraud to charge me ?
If they are charging a government imposed tax - but not passing that onto government in the way of tax - then they are defrauding me as they are not charging a government imposed tax - just putting the price up and pocketing the cash.
- HerrmannLv 71 year ago
"then they are defrauding me"
NO they are defrauding the Government, not you.
VAT (Value Added Tax) and Sales Tax (US) are a tax on the Consumer, not the business. The business has been enlisted (unwillingly) to collect said tax and remit it to the government on a regular basis. In the US, the Sales Tax is determined by state, not the federal government. Each state sets the guidelines on when a business needs to remit the tax. In MA, it depends on the volume of sales. A business with low liability (low taxable sales) may only have to remit on the Quarter (3 month) Basis while most tend to be required to remit on a monthly basis.
- curtisports2Lv 71 year ago
No, they are not defrauding you if they collect tax from you and don't pay it to the government. They are defrauding the government. YOU owe the tax. They are merely the collection agent under government order.
If you have evidence of the company not submitting those taxes, then bring it to the attention of someone in Revenue & Customs for them to investigate.
- 1 year ago
Things like VAT (Europe) and Sales Tax (US and others) are known as "Fiduciary Taxes".
This means the government is imposing the tax on you, the consumer, and enlisting the merchant to act as "fiduciary" or legally responsible middle-man.
The merchant has a legal responsibility to collect and remit these taxes on behalf of the government.
It is NOT 'Income". It is, in fact, recorded as a liability to the merchant until he remits it to the government.
- StephenWeinsteinLv 71 year ago
They are passing it on to the government. Even if they weren't, they would be defrauding the government, not you. (They would not be defrauding you because you would still be being charged the correct amount.) In any case, they cannot remove it. It is a government imposed tax, and they have to charge it, whether they like it or not (and they aren't pocketing it).
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- zipperLv 61 year ago
Do you know they are not paying this tax to the Government, or you are a summing that they are not. Believe this if the State gives a tax on something they have to pay it to the state or the state would close them down. Your just being stupid!
- NeverLv 71 year ago
Good luck with that. Might want to try pis si ng into the wind too.
- martinLv 71 year ago
It sounds like you're onto something, but it may be hard to get the general public behind you since they seem to love Starbucks too much. There would be a government agency in charge of VAT, however, who would be interested in listening to your points and possibly levying a fine against Starbucks.
- TavyLv 71 year ago
So where is your evidence?
- 1 year ago
The increase in value from buying in the coffee beans and other ingredients is subject to VAT and Starbucks pay it on to HMRC the same as any other business. If you have some evidence that they do not, you d better tell HMRC. Where Starbucks cheat the taxman is with Corporation Tax. They are supposed to pay tax on their UK profits, but make them disappear by paying a huge consultancy fee to Starbucks in Liechtenstein for advice on cup design.
- A HunchLv 71 year ago
You are incorrect.
The money that Starbucks charged you in VAT is passed to the government like any other VAT.
Why would you think it's not?