3 ms·
It's called "value added" because it's a tax on profit, and everyone in the supply chain pays it.
by srtjstjsj 6y ago
It's called "value added" because it's a tax on profit, and everyone in the supply chain pays it.
- FartyMcFarter 6y agoThe companies in the middle of the supply chain can reclaim any VAT they paid on goods/services used in the business [1], so effectively they don't pay it. VAT is definitely not a tax on profit, that's usually called "corporate tax" [2] which is a completely different thing. [1] https://www.gov.uk/reclaim-vat https://www.gov.uk/reclaim-vat [2] https://en.wikipedia.org/wiki/Corporate_tax https://en.wikipedia.org/wiki/Corporate_tax