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companies don't pay VAT because they claim it back on everything they buy they do however collect it
by blibble 6y ago
companies don't pay VAT because they claim it back on everything they buy
they do however collect it
- kalleboo 6y agoThey pay VAT on the value they add between what they buy and what they sell. Hence, Value-Added Tax.
- blibble 6y agono they don't, they collect it, but the consumer pays it this is the entire principle behind VAT
- trollied 6y agoYou're actually both right. A company collects VAT from customers when they purchase. But it also buys from suppliers at a lower value. It pays the difference in the two VAT numbers (from customer-to supplier) to the VAT authority.
- simonh 6y agoArguably the customer pays all of a companies taxes, after all that’s where the revenue comes from. The bottom line is those taxes all come from the activities of the company.