Reduced LOA rates in Germany

Discussion in 'Army Pay, Claims & JPA' started by Clerk_of_Jerks, Jan 23, 2007.

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  1. Can anyone explain to me how come LOA in Germany is going down even though the German Government has increased tax (and therefore the price) of some goods recently??

    Yes I have read the issued DIN about this but that doesn't give a proper explanation.
     
  2. You will be told that it is because the relative difference cost of living between Germany and the UK has closed. In other words, it used to cost stacks more to be in Germany than in the UK when you take into account the cost of buying things on the local economy, the cost of all those phone calls and letters home, the ferries and flights to get to see our relatives in the UK…… It doesn’t any longer.

    As someone who has not long ago returned to the UK after my latest three years in Germany – I can vouch for the fact that it has become far more expensive to support a family in the UK. The road fund licence, the cost of fuel, higher insurance rates, the TV licence fee, the extortionate cost of shopping are just a few of the things that have bitten into the Seagoons’ bank balance.

    I would take Germany with reduced (or even no) LOA anyday.
     
  3. Well it's got absolutley nothing to do with the cost of running two operations on a peace time budget!
     
  4. Absolutely correct. Think how internet shopping, budget airlines etc have revolutionised life in BFG!

    Having just returned from BFG after spending over half my career there, i can vouch that living in UK is not the big expensive demon that much of the BFG claim it to be.

    In fact, many things are much cheaper in the UK, noticably groceries and elctronic items.

    The only thing noticably more expensive is fuel - but actually this is because in BFG you have fuel coupons (at the local tankstelle fuel prices are equal, if not more than UK) and BFG fuel and lighting charges are comically low.

    Many of the old and bold are comparing UK now to when they were first posted to BFG, in some cases 10+ yrs. When a pint is now costing you £2.95 on the odd visit to the UK but left it was £1.95 it will feel like rip off britain. However i remember it was a couple of Dms for a pint, when i left it was around €3, which if my maths is correct around 8 Dms!

    And fighting a war on 2 fronts has nothing to do with LOA, different pots of cash for very different reasons
     
  5. Slightly related question - where are the current rates of LOA published ?
     
  6. Posted twice!!!
     
  7. Exactly. UK is cheaper which is why LOA must stay here, and higher now that Mwst has increased 2% to 19%.

    The new LOA rates were based on the review last year. They have stated in Sixth Sense that they now know the Mwst has gone up, but that will be taken into account in this years review. Too late...we're being charged 19% now.
     
  8. Yes you are being charged 19% Mwst but not an anything you cant use the tax free forms for!

    Normal food stuffs, kid clothes etch are still at 7% only "luxury goods" have a 19% tax rate on them.

    Claiming that living in Germany is more expensive than in the UK because of the MwSt is a red herring. Germany is more expensive in some ways but with all the freebies the military get* it is a LOT cheaper over here.

    *anything over DM100 (or Euro equivalent) can be bought tax free. Has this changed?

    LOA was always free beer tokens and I don't believe it has changed in the past few years.
     
  9. Yes you are being charged 19% Mwst but not an anything you cant use the tax free forms for!

    Normal food stuffs, kid clothes etch are still at 7% only "luxury goods" have a 19% tax rate on them.

    Claiming that living in Germany is more expensive than in the UK because of the MwSt is a red herring. Germany is more expensive in some ways but with all the freebies the military get* it is a LOT cheaper over here.

    *anything over DM100 (or Euro equivalent) can be bought tax free. Has this changed?

    LOA was always free beer tokens and I don't believe it has changed in the past few years.
     
  10. anything over €50 is egible for 0% MwSt, including non luxury goods, eg food
     
  11. what is mswt?

    moving to BFG soon.
     
  12. You are correct, but it isn't always that simple. The bill has to be paid through the PRI or a Mess, and not all shops accept the forms and you could have to get a cheque for the amount from the PRI etc before you can collect the goods. Many shops near to a barracks are fine, but if you go further afield it can be a problem as they look blankly at you when you talk of NATO Status Of Forces Agreements (SOFA) and entitlements while waving a form.
     
  13. mwst="Mehrgestrewer"(spelling) which is like the German VAT, if you buy product over €50 you are entitled to pay no VAT as such. When I was there it was about 16% you could claim back.
     
  14. MwSt is now at 19%, so you can claim that back. Nearly 20% off big items is not to be sniffed at, but as RoyalMile mentioned, it all depends where the shop is etc. E.G. I live in Bielefeld and work in Gutersloh. To but something, you first have to go to a shop and see something you like...go to the Base Admin Office (BAO) and fill out a form...go back to the shop and get the bill...go back to the BAO with the bill and pay the amount, minus the MwSt plus 5 Euro admin charge. Wait 24 hours for the cheque to be written and collect from the BAO...go back to the shop with the cheque and paperwork, then collect your item.
    So, for a 100 Euro item, you save about 14 Euro after paying the admin charge. After going back and forwards to the shop and sitting in the queue in the BAO etc, it is not always worth claiming back the MwSt. It only gets better when buying lots of furniture worth a few hundred Euro and more etc.
    Some companies will take the paperwork you initially get from the BAO and send the bill to the BAO for you, letting you grab the goods there and then. That method, for the companies that allow it, works best.