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Sorry, but I think you didn't read my comment. No tax is paid by the customer. He always pays gross. For example: you run a barber shop, mens haircut 10 €, wo

Sorry, but I think you didn't read my comment. No tax is paid by the customer. He always pays gross. For example: you run a barber shop, mens haircut 10 €, womens 10€. You charge mens from your VAT-exempt company, women from your non-VAT-exempt company. Regardless of what you get in net, the customers hand you 10€ each. However the government takes 2€ from your womens hair cutting business, after you've filed your tax statement. The customer doesn't care whether you have to pay VAT or not. If I may ask: Do you run a business where you have to deal with filing VAT on a regular basis? I'm asking because this misconception that businesses don't have to pay VAT is something that I've held myself, obviously because I didn't knew back then what I was talking about.

lultimouomo 8y ago
> If I may ask: Do you run a business where you have to deal with filing VAT on a regular basis? I'm asking because this misconception that businesses don't have to pay VAT is something that I've held myself, obviously because I didn't knew back then what I was talking about. I very much do, I file quarterly and deal both domestically, intra-EU with reverse charge and extra-EU which is VAT exempt. You're conflating the fact that you're filing VAT reports and forwarding VAT money to the state with the fact that you're paying VAT. These are two different things. Again, do you pay employees? Do you retain some money from their wages and forward that to the state as a down payment on their income taxes[0]? Would you say that personal income tax is a tax on companies? [0] I think this is usual in Europe; it surely is how it works in Italy
- woodpanel 8y ago
  Okay I see this is getting nowhere ;-) Let me quote another user on this thread: > "it’s absolutely not the same. If the VAT goes up 10%, your benefits after taxes won’t change one bit. VAT is indeed not paid by corporations." but if you insist that somehow the customer is paying VAT to the government, then fine with me. I'm not here to be other people's tax-attorney.

lultimouomo 8y ago

> If I may ask: Do you run a business where you have to deal with filing VAT on a regular basis? I'm asking because this misconception that businesses don't have to pay VAT is something that I've held myself, obviously because I didn't knew back then what I was talking about. I very much do, I file quarterly and deal both domestically, intra-EU with reverse charge and extra-EU which is VAT exempt. You're conflating the fact that you're filing VAT reports and forwarding VAT money to the state with the fact that you're paying VAT. These are two different things. Again, do you pay employees? Do you retain some money from their wages and forward that to the state as a down payment on their income taxes[0]? Would you say that personal income tax is a tax on companies? [0] I think this is usual in Europe; it surely is how it works in Italy

woodpanel 8y ago
Okay I see this is getting nowhere ;-) Let me quote another user on this thread: > "it’s absolutely not the same. If the VAT goes up 10%, your benefits after taxes won’t change one bit. VAT is indeed not paid by corporations." but if you insist that somehow the customer is paying VAT to the government, then fine with me. I'm not here to be other people's tax-attorney.