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I am not sure I understand your point about VAT. Regardless of who pays the tax in a technical sense, the government still make 20% from non-exempt purchases.
by 7952 13y ago
I am not sure I understand your point about VAT. Regardless of who pays the tax in a technical sense, the government still make 20% from non-exempt purchases. Do consumers really want to give even more of a purchase to the government?
The public are not going to boycott the vibrant and dynamic marketplace that Amazon has created. They are boycotting the stagnant British High Street.
- DanBC 13y agoWhen Starbucks was being criticised for tax avoidance they mentioned the amount of VAT they handed over, and the amount of income tax that they paid. But VAT is something that the customer pays, it is iust gathered by Starbucks. And income tax is something that the employee pays, and that is just collected by Starbucks. By mentioning those two taxes they pointed out that other people were correctly paying taxes without avoidance shennanigans, and that Starbucks wasn't. Amazon is in a better position than Starbucks because the setup is not so weird. Starbucks has a complicated system of selling very expensive roasted beans to itself which reduces profits in one part of the company - UK Starbucks makes very little profit - and increasing profit in another part of the company (which happens to be located in a low tax region).