2 ms·

Netflix paid £3.2m in tax on £940m of UK subscription revenue

• dazc 6y ago
  So Netflix are another company, like amazon, that are now paying tax on revenue?
• em10fan 6y ago
  Revenue doesn't mean profit. Netflix makes hardly profit, so thus pay little tax
• aurizon 6y ago
  In the UK they have VAT, a sales tax on every transaction. So if you buy a thing for $1000 with 10% VAT, you actually pay the seller $1100. You then sell it for $1200 + 10% Vat = $1320 you collect. You remit the $120 VAT you collected to the government, but you first deduct the $100 VAT you paid as an input tax credit = $20 paid to government. Works out like sales taxes, where intermediate buyers have sales tax exemptions, but it is harder to cheat as there are no VAT exemptions = if you are exempt = Foreign Embassy, you file a VAT refund claim to the government, same if you export to someone outside your VAT area.