VAT on derivatives is weapons grade stupid. EU banks that trade derivatives in London will be praising Brexit
This is even more crazy than I thought THREAD
1/ The UK is being pulled up because they didn't charge VAT on derivatives transactions without making the appropriate request to the commission. So it would have been ok had they made that request
2/ But on what should they have charged VAT. The principal? The VAT bill on that would more than the EU's GDP. That would be Kim Il Jong or Idi Amin level of craziness.
3/ But maybe it's only on the fees. Phew, that's more reasonable. No it isn't, retards, derivatives income comes from a spread on the transaction (usually measured in pips, not to be confused with Gladys Knight's backing group)
4/ To calculate the VAT, you would have to compare the price at which the client dealt to the wholesale price at the time. The problem is, the wholesale price is simply the price at which banks transact with each other
5/ In any second there will be many bank to bank transactions, at (very slightly) different prices or rates. Which one is the wholesale price?
6/ In anything but a kangaroo court, it would be judged wholly unreasonable to levy VAT on derivative transactions and therefore to expect anyone to apply for an exemption
7/ If the #FBPE twats say "that's EU law, the UK are so stupid they should have known" my answer is - that shows that EU law is insane so now you can stop asking me to provide you with examples of the benefits of Brexit ...
8/ .. you now have a perfect one: you are no longer subject to a legal system which is completely fucking insane.
9/ Of course we can add to this the fact that the EU court waited until now to make this determination. Derivatives have only been traded VAT free everywhere in the world for over half a century.
10/ The message sent by this judgement to every EU bank and trading firm is ... get your ass out of the EU and over to London before those nutters eat you alive
11/ For years I argued back & forth with #FBPE mongs who said UK banks would move to the EU to trade with their EU banking counterparties
12/ I argued that nearly all EU banks had London offices & they would be keen to use those because it gave them extra flexibility - in case EU rules became onerous. What nonsense they cried ...
13/ ... but now we have it. The EU have come out & done a crazy assed, extreme, banana republic thing which I never dreamed of when I was having that argument
14/ If London's position as the financial centre of Europe were ever in question, this court ruling ends that debate for good. END (of thread & of Remoaner arguments forever)
