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I was curious about the taxes as well. Does anyone know what the argument for having a tax system set up this way would be? I imagine there must be some reason,

by Permit 15y ago

I was curious about the taxes as well. Does anyone know what the argument for having a tax system set up this way would be? I imagine there must be some reason, but I'm not sure what it would be.

yardie 15y ago
Actually, and maybe I'm missing something, they are quite wrong. Yes you pay a VAT on components, but as a business you reclaim it and pass it down the line. Import components -> (pay VAT) build item (reclaim VAT) -> (pay VAT) wholeseller (reclaim VAT) -> (pay VAT) retailer (reclaim VAT) -> (pay VAT) buyer. As long as you are engaging in commerce you never pay VAT on the items you for your business. Also, there are electronic schemes to speed up the reclamation process. If you have a business ¿TaxID? number some resellers will drop the VAT for you knowing they'll reclaim it anyway.