I am, my company isn't. What's your point? How would things get 21% more expensive from one day to another? The VAT system already functions and is already calculated into the cost of living. An example: selling a SaaS subscription in the EU, the price would be 100%-19% VAT + VAT, selling the same subscription to the US, the price would be 100%. Consumer in the EU does not lose anything. Business neither because the VAT the business pays back to the VAT system can be claimed back on VAT paid by the same business on other services.
The VAT thus motivates businesses to spend money on goods and services. What is it used for? "VAT essentially compensates for the shared service and infrastructure provided in a certain locality by a state and funded by its taxpayers that were used in the provision of that product or service." https://en.wikipedia.org/wiki/Value-added_tax
> How would things get 21% more expensive from one day to another?
New Laws.
Is more expensive because everybody is paying a 21% more in taxes. So either the customer pays more, or the seller accepts to take a cut in their benefits to keep the price in a strategic value (below the product of his competitors)
To compensate it and survive, the startup needs now to find a way to produce the 'same' product 21% cheaper. For example, in China.
That invariably leads to your product being cloned for somebody and fake products invading your market.
And your startup is now a company, but also a tax collecting office. You are forced also to be a tax collector, collect money from your clients, keep it safe and pay it to the mobs... to the government before 100 days, either you have it or not.
Your customers, of course, hate it. Will hate YOU for that.
And will try to press you to forget VAT all the time. This system introduces a incredible amount of anger and friction in the process of selling a product, that must to be as straightforward and easy as possible. And is a bless to the bigco competitors.
That leads us to the parallel VAT-less market that will be created in no time.
> You are forced also to be a tax collector, collect money from your clients, keep it safe and pay it to the mobs... to the government before 100 days, either you have it or not.
Well, you raise an invoice with VAT on it, you get paid, you put the VAT money on the side because it is NOT YOUR money and you pay the VAT to the financial system. Your invoice goes into accounting only when it's paid. Can you explain what's wrong with that?
> Your customers, of course, hate it. Will hate YOU for that.
160 countries around the world have VAT / GST. Haven't seen widespread "HATE" anywhere.
