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A comment on Supply Chain Shortages Continue Around the World. Get Used to It. Parent comment

Re:Supply Chain Shortages Continue Around the World. Get Use... by tonyedgecombe on Friday September 03, 2021 @05:02AM (#28401929)
VAT doesn’t accumulate like that. If my business pays VAT on some goods it gets to claim that back at the end of the quarter. For most business it’s neutral (apart from the paperwork).
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Re:Supply Chain Shortages Continue Around the World. Get Use... by the-dude on Friday September 03, 2021 @06:58AM (#28402599)
> For most business it’s neutral (apart from the paperwork).

Ehhh, I guess it is neutral if your expenses are the same as your revenue. That is no profit.

VAT is calculcated on 'the value you add'. What you owe is that amount minus the VAT paid on your expenses.

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Re:Supply Chain Shortages Continue Around the World. Get Use... by tonyedgecombe on Friday September 03, 2021 @08:34AM (#28403297)
It's neutral up the chain, so if my supplier charges 20% vat then I charge 20% vat it doesn't result in the consumer paying 44% vat.
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