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Topic: sales tax on food  (Read 915 times)

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sales tax on food
« on: July 16, 2005, 06:36:51 AM »
I have looked on the tax section of this forum and am I to understand this correctly that there is no tax on food that is purchased in a grocery store (not a restaurant or take out)? If so, then WOW! 
Here in Sweden they tax everything including children's clothing. The standard sales tax here for purchased goods whether this be clothes, makeup, household appliances, electronics, a car or anything else that one cannot eat is 25%. ALL food bought in grocery stores is 12%, in restaurants or take out it is 25%. Liquor including beer and wine is on a sliding scale depending on the actual percentage of alcohol content. Beer and wine are lower like 25% sales tax whereas Gin, Vodka and Whiskey are about 45%. No wonder Sweden is one the most taxed countries in the world!

A future move to the UK looks more promising every day!  :D
I'm an American (with dual citizenship) living in Stockholm, Sweden for almost 6 years.

My Swede and I are looking towards a future move to the UK.


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Re: sales tax on food
« Reply #1 on: July 16, 2005, 09:18:17 AM »
Well, scandinavia is well known for it's high taxes!! By US standards, I find the UK very expensive due to tax, yet the social services that the high taxes are supposed to pay for, are in a mess...

Oh well...
When I was 5 years old, my mother always told me that happiness was the key to life. When I went to school, they asked me what I wanted to be when I grew up. I wrote down ‘happy’. They told me I didn’t understand the assignment, and I told them they didn’t understand life. ~ John Lennon


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Re: sales tax on food
« Reply #2 on: July 16, 2005, 09:37:45 AM »
Yes, that is probably true about the social services. For us though we are in our early-mid 30's and have no children (nor plan to) so despite UK taxes being expensive, compared to Sweden we'd have more left over. Here we pay an extreme amount of taxes for services we do not and probably never will use. If we had children I'm certain that I would feel differently though.

I should add that I do like living in Sweden for the most part.  It is a lovely country. As I probably mentioned before on another post my parents are from Sweden but they have lived in the US for over 40 years. I have a lot of ties with Sweden as well as dual American/Swedish citizenship. On the other hand we (Swedish fiance and I) want to try something different and so we are aiming for the UK. It seems to fit better with what we are looking for.
I'm an American (with dual citizenship) living in Stockholm, Sweden for almost 6 years.

My Swede and I are looking towards a future move to the UK.


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Re: sales tax on food
« Reply #3 on: July 19, 2005, 10:04:55 AM »
As I understand it, Britain and Ireland are the only two EU countries which do not charge VAT on food (I think you call it MOMS in Sweden?), although many do apply a reduced rate rather than their standard rate.

Apparently the U.K. insisted on this right from the start of VAT in 1973, and implemented it by a roundabout method. 

The VAT rules specify that certain goods and services are exempt from the tax, but this list does not include food.  However there was nothing in the rules to say what rate must be applied to taxable items, as this was (and still is) left up to national governments.    So all that we did was to set the VAT rate for food at zero percent!     The same trick was used to make children's clothes. books, and a few other things tax-free even though the VAT rules say that they are taxable.

Actually, certain foods which are classed as "luxury" items (e.g. chocolate bars) are taxed at the standard rate (17.5%).   This has also led to some rather complex arguments on occasions as to whether a certain item is taxable or not.

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