Re:Some WFH employees now live in another country
by cromka on Thursday September 15, 2022 @04:16PM
(#32857900)
> Wait, aren't digital nomads literally bringing money in from another country?
I used to make the same argument, but it's just so convenient when it's easy to forget that there is a reason why income tax exists on top of VAT in the first place. And that's because VAT doesn't cover all of the budget expenses.
So you pay your hefty income tax back home, and only pay VAT on the products and services provided by (private) entities. The proportion of the budget not covered by VAT is covered by the locals and their income tax. That's not OK.
Same reason why the most touristy places impose additional tourist tax.
I used to make the same argument, but it's just so convenient when it's easy to forget that there is a reason why income tax exists on top of VAT in the first place. And that's because VAT doesn't cover all of the budget expenses.
So you pay your hefty income tax back home, and only pay VAT on the products and services provided by (private) entities. The proportion of the budget not covered by VAT is covered by the locals and their income tax. That's not OK.
Same reason why the most touristy places impose additional tourist tax.