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Businesses collect it, but it's not levied on businesses. How do you explain the fact that businesses can reclaim VAT they've paid, but consumers can't? The o
by DanBC 7y ago
Businesses collect it, but it's not levied on businesses.
How do you explain the fact that businesses can reclaim VAT they've paid, but consumers can't?
The only explanation is that VAT is a tax paid by consumers, not by businesses.
- jacquesm 7y agoBecause if they could not reclaim it you would get VAT on VAT on VAT for every step in the value chain. The idea is to only impose it on the last step when the total value is known.