Re:Supply Chain Shortages Continue Around the World. Get Use...
by sokoloff on Friday September 03, 2021 @06:39AM
(#28402499)
> Under a 5% VAT, Apple pays 5% of its profits (not revenue)
Apple pays 5% on the value it added, not on its profits on the phone.
If they buy $500 in components from upstream suppliers and sell the phone for $1000, they’ve added $500 of value (on which they’ll remit VAT), but not achieved $500 of profits on that phone. (They have labor and other overhead.)
Apple pays 5% on the value it added, not on its profits on the phone.
If they buy $500 in components from upstream suppliers and sell the phone for $1000, they’ve added $500 of value (on which they’ll remit VAT), but not achieved $500 of profits on that phone. (They have labor and other overhead.)