4 ms·
>>Result is the same, VAT is not a cost for enteprises. It's not a cost when transacting with other companies but it's obviously a cost when selling to end cus
by bluecalm 8y ago
>>Result is the same, VAT is not a cost for enteprises.
It's not a cost when transacting with other companies but it's obviously a cost when selling to end customers. If people are willing to buy a car for 20 000 Euro you will be forced to sell for 16 666 Euro + 20% VAT, you can't magically sell for 20 000 + 20% VAT because "consumers pay VAT". If materials + labor cost of a car is 10 000 Euro you make 6 666 Euro per car if there is 20% VAT and 10 000 Euro per car if there is no VAT.