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I mean, VAT is not a tax on revenue, it's a tax on added value. In essence it's a form of profit taxing already. If you buy $10 of flower (including VAT) and t
by IkmoIkmo 5y ago
I mean, VAT is not a tax on revenue, it's a tax on added value. In essence it's a form of profit taxing already.
If you buy $10 of flower (including VAT) and turn it into $15 of bread (including VAT), you effectively only pay value added tax on $5. If you're generating no real margins and just have a lot of volume, you're effectively also paying no real VAT.
The difficulty is with cross-border transactions.