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A comment on The public has a right to know how companies that pay no taxes pull it off. Parent comment

Re:The public has a right to know how companies that pay no ... by srtjstjsj on Tuesday November 03, 2020 @08:02AM (#24979224)
It's called "value added" because it's a tax on profit, and everyone in the supply chain pays it.
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Re:The public has a right to know how companies that pay no ... by FartyMcFarter on Tuesday November 03, 2020 @08:27AM (#24979406)
The companies in the middle of the supply chain can reclaim any VAT they paid on goods/services used in the business [1], so effectively they don't pay it.

VAT is definitely not a tax on profit, that's usually called "corporate tax" [2] which is a completely different thing.

[1] https://www.gov.uk/reclaim-vat

[2] https://en.wikipedia.org/wiki/Corporate_tax

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