Europe

Table of Contents

• Currency

• Taxation
  

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The national currency used in Vandila is Central. As of 2024, 1 Central is 0.26 USD.
The denominations are displayed below, with the left image being Obverse and right Reverse.

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Taxation System
Vandila's taxation system is slightly complicated but well organised with progressive taxation system in use. The income tax is calculated via the brackets system.
The tax system is structured to ensure that higher earners contribute a larger percentage of their income to taxes, while lower-income individuals face lower tax burden. With the minimum wage set at 36'978 centrals annually (3'081.50 centrals per month or 801.19 USD or 719.64 EUR).

Tax Brackets Overview:
The system features 12 income brackets, with progressively higher tax rates as income rises. Each bracket represents a portion of income taxed at a specific rate, and the income ranges are structured as follows:

• Income from 3'081.50 to 3'916.50 centrals is taxed at 0%.

• Income from 3'916.50 up to 4'752.00 centrals is taxed at 15%.

• Income from 4'752.00 up to 5'587.50 centrals is taxed at 20%.

• Income from 5'587.50 up to 6'423.00 centrals is taxed at 25%.

• Income from 6'423.00 up to 7'258.50 centrals is taxed at 30%.

• Income from 7'258.50 up to 8'094.00 centrals is taxed at 35%.

• Income from 8'094.00 up to 8'929.50 centrals is taxed at 40%.

• Income from 8'929.50 up to 9'765.00 centrals is taxed at 45%.

• Income from 9'765.00 up to 10'600.50 centrals is taxed at 50%.

• Income from 10'600.50 up to 11'436.00 centrals is taxed at 55%.

• Income from 11'436.00 up to 12'271.50 centrals is taxed at 60%.

• Income above 12'271.50 centrals is taxed at 65%.
  

How to understand the system?

For example if you earn 5,500 centrals, part of your income will be taxed at 0%, part at 15%, and part at 20% as the income falls in multiple brackets.
To simplify suppose a citizen earns 8,500 centrals per month:
The first 3,916.50 centrals they earn will not be taxed at all.
The next portion, from 3,917 to 4,752 centrals, will be taxed at 15%.
The portion from 4,752 to 5,587 centrals will be taxed at 20%, and so on.

What does this mean for the taxpayers?

The system ensures that the wealthier segments of society bear a proportionally higher tax burden while protecting low-income earners from excessive taxation. Each portion of income is taxed differently, so no one pays a single rate on their entire income.

VAT
The VAT is set to 20% with exemptions: essential goods such as food and medicine are taxed at maximum 10% (e.g. water is taxed 2%, bread, milk and other diary products at 5%, meat at 10%).