[az_gila]

Same in the UK.

Workers will accept cash and not charge the customer the VAT tax of 20%.

Two losses for the govt. - the workers income declaration and the VAT tax collection.

This is what happens when VAT/sales tax rates go too high...

[BobL]

“Workers will accept cash and not charge the customer the VAT tax of 20%.”

I don’t see how to do that. If the sellers forgo the VAT, they lose their money, not the government (since 90% of the VAT, 18% or the 20%) is already paid by the seller when he buys his items from the manufacturer. That’s why governments like it so much.

[BobL]

“Workers will accept cash and not charge the customer the VAT tax of 20%.”

I don’t see how to do that. If the sellers forgo the VAT, they lose their money, not the government (since 90% of the VAT, 18% or the 20%) is already paid by the seller when he buys his items from the manufacturer. That’s why governments like it so much.

Perhaps I’m missing something.