4 ms·
Yes, a myth Just like VAT increases are not quickly followed by price increases A myth.
by JackSlateur 2y ago
Yes, a myth
Just like VAT increases are not quickly followed by price increases
A myth.
- alangibson 2y agoLol. No clue what you're talking about eh? VAT is not paid by businesses. It is paid directly by the consumer.
- JackSlateur 2y agoHere in France, VAT is a tax collected by the business. The myth is that a VAT increase (for instance, 7% => 10%, a couple of years ago) would shrink the business' margins : for 100€ paid by the customer, 93€ used to go to the business before the change, and only 90€ would go after the change. Of course, and this is a massive surprise, all prices increased : the product now costs 110€, with 99€ going to the business and 11€ as VAT So yeah, I'm pretty sure I know how my taxes work. That said, I can only speak about here in France, as I do not know how it works in other countries.