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They pay VAT on the value they add between what they buy and what they sell. Hence, Value-Added Tax.
by kalleboo 6y ago
They 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.