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> Apple pays VAT That is incorrect. Apple doesn't pay VAT, they offset any notional VAT bill against the total of VAT collected from customers and pass-throug

> Apple pays VAT That is incorrect. Apple doesn't pay VAT, they offset any notional VAT bill against the total of VAT collected from customers and pass-through the residue to the revenue agency. Generally, each such trader in the chain of supply from manufacturer through to retailer charges VAT on his or her sales and is entitled to deduct from this amount the VAT paid on his or her purchases. http://www.revenue.ie/en/tax/vat/ http://www.revenue.ie/en/tax/vat/ The non-corporate end-user is stuck with paying VAT because they're not 'adding value'.

bertil 10y ago
You are technically correct, which is the best kind of correct. However, I’d be surprised if Apple buys enough things in Ireland to offset the sales of iPhones in Europe.
- brohee 10y ago
  Apple is not paying VAT, it's collecting it. VAT is explicitely paid by the end user...
  - bertil 10y ago
    The difference between the VAT that Apple collects and the VAT that is reversed to their provide is what is considered paid by Apple — at least, I assume it was in their lawyer’s math claiming they pay more taxes than anyone else. You seem familiar with the principle of VAT. In reality, many companies who practice tax optimisation scheme are happy to play with that notion beyond recognition. In Europe, Amazon aligns some of its prices to local prices including VAT, but they only collect Luxembourg VAT, pocketing the difference. The tax accountant of any (international) travel agent would be happy to dazzle you with how much money they are making from creative interpretation of international rules on VAT. If a good is not sold, the last buyer still owe the VAT on it, even when they are not a user of that good, end user or otherwise. VAT is paid by companies: I’ve had enough issues with my own tax to confirm that you don’t need to collect it to owe it to unscrupulous governments.

bertil 10y ago

You are technically correct, which is the best kind of correct. However, I’d be surprised if Apple buys enough things in Ireland to offset the sales of iPhones in Europe.

brohee 10y ago
Apple is not paying VAT, it's collecting it. VAT is explicitely paid by the end user...
- bertil 10y ago
  The difference between the VAT that Apple collects and the VAT that is reversed to their provide is what is considered paid by Apple — at least, I assume it was in their lawyer’s math claiming they pay more taxes than anyone else. You seem familiar with the principle of VAT. In reality, many companies who practice tax optimisation scheme are happy to play with that notion beyond recognition. In Europe, Amazon aligns some of its prices to local prices including VAT, but they only collect Luxembourg VAT, pocketing the difference. The tax accountant of any (international) travel agent would be happy to dazzle you with how much money they are making from creative interpretation of international rules on VAT. If a good is not sold, the last buyer still owe the VAT on it, even when they are not a user of that good, end user or otherwise. VAT is paid by companies: I’ve had enough issues with my own tax to confirm that you don’t need to collect it to owe it to unscrupulous governments.