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The majority of Apple's sales is to consumers, so it's equivalent for the sake of argument.
by saddlerustle 5y ago
The majority of Apple's sales is to consumers, so it's equivalent for the sake of argument.
- dragonwriter 5y agoIts not equivalent to a revenue tax, because a VAT excludes purchase price and revenue doesn’t.
- deleted 5y ago[deleted]
- saddlerustle 5y agoI'm not sure what you mean. If you assume all sales were to consumers it's true that the government receives ~~18% of Apple's revenue compared to if Apple sold nothing. Or are you just referring to the small difference between counting "revenue" as inclusive of VAT or exclusive of VAT?
- tomp 5y agoVAT excludes the VAT paid when the company purchased the raw materials, i.e. it's paid net. The end result is, the consumer pays VAT which is 20% of the price (i.e. 20% of the revenue), and the tax is spread out evenly across the whole production supply chain, weighted by the amount of added value by each company in the chain.