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Originally Posted by thegoodwife
Actually the VAT man refunds the VAT for all except of the last transaction.
One of the basic rules in VAT is that the same thing may not be VAT taxed twice.
You can read that on the page where the image is from:
wikipedia.org/wiki/Value-added_tax
I'm not sure why you what to believe so hardly that you have to pay it. There are cases where would need to pay it but also would get it back, but in ours thats not true.
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on this wiki page, it says...
Quote:
With a value-added tax
With a 10% VAT (tax amounts in bold):
With a 10% VAT
The manufacturer spends ($1 × 1.10) = $1.10 for the raw materials, and the seller of the raw materials pays the government $0.10.
The manufacturer charges the retailer ($1.20 × 1.10) = $1.32 and pays the government ($0.12 minus $0.10) = $0.02, leaving the same gross margin of ($1.32 – $1.10 – $0.02) = $0.20.
The retailer charges the consumer ($1.50 × 1.10) = $1.65 and pays the government ($0.15 minus $0.12) = $0.03, leaving the same gross margin of ($1.65 – $1.32 – $0.03) = $0.30.
The manufacturer and retailer realize less gross margin from a percentage perspective. If the cost of raw material production were shown, this would also be true of the raw material supplier's gross margin on a percentage basis.
Note that the taxes paid by both the manufacturer and the retailer to the government are 10% of the values added by their respective business practices (e.g. the value added by the manufacturer is $1.20 minus $1.00, thus the tax payable by the manufacturer is ($1.20 – $1.00) × 10% = $0.02)
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https://simplyvat.com/social-media-influencer-tax
not sure what the problem is, as creators of content, digital services, the production of a film, VAT should be paid.
I always recommend people to ask their own accountants, but is best to find out from the proper channels than be held by the VAT man owing 1000´s...
