3 ms·
This is wrong. If i offer a service for 100 €. I have play VAT for i, typically i add these to the bill, but for the sake of simple numbers i dont. As an exam
by rspoerri 2y ago
This is wrong.
If i offer a service for 100 €. I have play VAT for i, typically i add these to the bill, but for the sake of simple numbers i dont.
As an example, i have following costs for offering the service:
- Materials: 20€ - i can deduct these from the VAT.
- Salaries: 60€ - i can NOT deduct these from the VAT.
- Profit: 20€ - i can NOT deduct these from the VAT.
So earning my company 100€ will have me pay (in switzerland for example 7%) approximately 6€ VAT, the 1€ i did not have to pay, must be paid by the producer of the materials. Of course you can argue that the customer pays the 6€ and my company only pays the 1€, but it's never the less always a split bill.
- alexanderchr 2y agoThe bill looks like it is split because VAT is collected at each transaction, but in the end it nets out for everyone but the end consumer. So in your case the raw material producer would collect €1 of VAT from you, but this is entirely fictional, because you can immediately claim it back. Only when you sell the goods to an end consumer would VAT that cannot be claimed back be due.