VW demands access to US goverment loans....

[LincolnFan]

Sorry Lincoln l forgot the VAT went up to 19% last year so if VW sell a car for $20,000 Stateside they can claim $3,800 VAT back from their German Government as a reward.

 

 

Here is a little bit on how the German Kraut cheating bastards work Lincoln.............

http://www.eagleforum.org/psr/2007/may07/psrmay07.html

 

How Foreigners Cheat Americans on Trade

Those nations recovered from World War II many years ago, but they still cling to what started out as a little advantage but has steadily increased to become a massively unfair advantage. The cost to U.S. producers increased to a whopping $327 billion in 2006. In practical terms, this means that the German manufacturer of a car exported to the United States gets a rebate from the German government equal to the indirect taxes paid in Germany, a type of tax called the Value Added Tax (VAT). Since the VAT rate in Germany is 19%, the German carmaker gets a 19% tax rebate on every vehicle exported to the United States.

 

That's a significant subsidy to German auto manufacturers which enables them to sell cars in America for much less than they sell for in Germany. But what about American cars exported to Germany?

 

A U.S. manufacturer exporting an auto to Germany must pay the German government a VAT equivalent tax of 19 percent of the price of the car plus 19 percent of all the costs of transportation, insurance, docking and duties involved in getting the car to Germany. The U.S. company gets no credit for corporate taxes it pays in the United States. Today, 157 other countries use a VAT tax system that gives foreigners a large and unfair advantage over U.S. producers in both our markets and in foreign markets. This two-edged sword cost American producers $327 billion in 2006.

 

Lol, sour Germany. But why the hell did the Eurofags see it fit to raise the VAT? Wasn't it 17.5% a while ago?

[Joe771476]

The EU is run by German interests. When Scania wanted to expand its truck business the EU balked, but when Daimler wants something they get it!

[Edstock]

"How Foreigners Cheat Americans on Trade"

 

Iy's not cheating, But it can look that way, if you don't understand the difference between VAT and "normal" sales taxes.

 

Before Canada adopted its VAT, we had a Federal Sales Tax that got applied at the last wholesale stage, and wasn't charged for exports.

 

VATs work entirely differently with tax paid at every step as the item is built, with no exceptions, so the VW coming down the line is built with components that VW has shelled out real money in the way of tax. So, as it's an export and VW gets some money back. The end result is pretty much the same.

 

Canada is probably stuck with the VAT method. IMHO, VATs are more pervasive than a non-VAT sales tax, and takes more government to administer. Don't go there.

[suv_guy_19]

VATs work entirely differently with tax paid at every step as the item is built, with no exceptions, so the VW coming down the line is built with components that VW has shelled out real money in the way of tax.

[/quote0]

 

 

As a retailer, if I buy something, and pay GST on it, I get that money back. Doesn't it work the same way for VW?

[Mark B. Morrow]

The funds were designed to retool plants that were more than 20 years old. VW should have bought Wixom, Norfolk, or one of GM's/Chrysler's closed plants if they wanted the money. Heck, they could have even retooled the plant they used to have in Pennsylvania. Their government is subsidizing them enough. Perhaps Ford and GM should petition the German government for some of that money.

 

 

VW's old Pennsylvania plant at New Stanton was sold to Sony years ago. IIRC they are still making TVs there.

[jpd80]

Sorry Lincoln l forgot the VAT went up to 19% last year so if VW sell a car for $20,000 Stateside they can claim $3,800 VAT back from their German Government as a reward.

 

 

Here is a little bit on how the German Kraut cheating bastards work Lincoln.............

http://www.eagleforum.org/psr/2007/may07/psrmay07.html

 

How Foreigners Cheat Americans on Trade

Those nations recovered from World War II many years ago, but they still cling to what started out as a little advantage but has steadily increased to become a massively unfair advantage. The cost to U.S. producers increased to a whopping $327 billion in 2006. In practical terms, this means that the German manufacturer of a car exported to the United States gets a rebate from the German government equal to the indirect taxes paid in Germany, a type of tax called the Value Added Tax (VAT). Since the VAT rate in Germany is 19%, the German carmaker gets a 19% tax rebate on every vehicle exported to the United States.

 

That's a significant subsidy to German auto manufacturers which enables them to sell cars in America for much less than they sell for in Germany. But what about American cars exported to Germany?

 

A U.S. manufacturer exporting an auto to Germany must pay the German government a VAT equivalent tax of 19 percent of the price of the car plus 19 percent of all the costs of transportation, insurance, docking and duties involved in getting the car to Germany. The U.S. company gets no credit for corporate taxes it pays in the United States. Today, 157 other countries use a VAT tax system that gives foreigners a large and unfair advantage over U.S. producers in both our markets and in foreign markets. This two-edged sword cost American producers $327 billion in 2006.

 

Nearly every country in the developed world gives its export manufacturers exemption/rebates on

consumption taxes normally applicable to domestic sales. The USA is one glaring example of a country

that does not support its exporters in any field - not just cars.

 

And for the record, the UK also allows VAT rebates on items exported/sold outside of the EEC.

[Edstock]

As a retailer, if I buy something, and pay GST on it, I get that money back. Doesn't it work the same way for VW?

You get that money back when you sell the product and deduct the VAT you paid from the wholesaler from the VAT you charge the consumer.

 

But with a final export, VW can't charge a foreign company a German tax (they could try, but if the importer refuses to pay, an export sale is lost), so the only way they can get back all the tax money in that car is from a government rebafund of those taxes.

[suv_guy_19]

You get that money back when you sell the product and deduct the VAT you paid from the wholesaler from the VAT you charge the consumer.

 

But with a final export, VW can't charge a foreign company a German tax (they could try, but if the importer refuses to pay, an export sale is lost), so the only way they can get back all the tax money in that car is from a government rebafund of those taxes.

 

 

Sorry, now I understand. brain fart.

[TStag]

Sorry Lincoln l forgot the VAT went up to 19% last year so if VW sell a car for $20,000 Stateside they can claim $3,800 VAT back from their German Government as a reward.

 

 

Here is a little bit on how the German Kraut cheating bastards work Lincoln.............

http://www.eagleforum.org/psr/2007/may07/psrmay07.html

 

How Foreigners Cheat Americans on Trade

Those nations recovered from World War II many years ago, but they still cling to what started out as a little advantage but has steadily increased to become a massively unfair advantage. The cost to U.S. producers increased to a whopping $327 billion in 2006. In practical terms, this means that the German manufacturer of a car exported to the United States gets a rebate from the German government equal to the indirect taxes paid in Germany, a type of tax called the Value Added Tax (VAT). Since the VAT rate in Germany is 19%, the German carmaker gets a 19% tax rebate on every vehicle exported to the United States.

 

That's a significant subsidy to German auto manufacturers which enables them to sell cars in America for much less than they sell for in Germany. But what about American cars exported to Germany?

 

A U.S. manufacturer exporting an auto to Germany must pay the German government a VAT equivalent tax of 19 percent of the price of the car plus 19 percent of all the costs of transportation, insurance, docking and duties involved in getting the car to Germany. The U.S. company gets no credit for corporate taxes it pays in the United States. Today, 157 other countries use a VAT tax system that gives foreigners a large and unfair advantage over U.S. producers in both our markets and in foreign markets. This two-edged sword cost American producers $327 billion in 2006.

 

You really will believe want you want to believe. VAT is fair and is used by nearly every country except the USA. If your going to talk about VAT at least research what you are talking about. As someone who understands VAT inside out then I can tell you that that article is utter shite!

[Ford Jellymoulds]

You really will believe want you want to believe. VAT is fair and is used by nearly every country except the USA. If your going to talk about VAT at least research what you are talking about. As someone who understands VAT inside out then I can tell you that that article is utter shite!

 

VAT is fair it is used in every country - The Item says that 157 countries pay VAT can't you read T-Stag

Used in every country except the US - Wow T-Stag this is only stated right through the article you need glasses.

 

You are utter shite you can't read get some glasses.

 

19% VAT the German government collects from VW during the manufacturing process stays in the German economy it pays for schools housing, hospitals health care etc.

 

If Boeing or Ford export US made products into Germany they are hit with 19% VAT how much can they claim back from the US government?

 

Germans are cheating bastards the article is not wrong and like it says, the cost to U.S. producers increased to a whopping $327 billion in 2006.