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> Those are both true in the accounting sense that the money is paid by those respective parties to the government Where do you live that this is true of VAT?
by dmurray 5y ago
> Those are both true in the accounting sense that the money is paid by those respective parties to the government
Where do you live that this is true of VAT? Everywhere I know of, the retailer is responsible for paying VAT on the products they sell to consumers.
- lordnacho 5y agoYes this is true. I thought about this when I wrote it, and the explanation is that as the retailer you just subtract the VAT off your books, and the customer is the one who "paid", all you're doing as the business is counting the money and sending it through to government. So in your accounts you just have this VAT number that appears to be the customer paying the government, but economically it's not quite like that.