Indeed so, that's why it's called a Tax on Value Added. The mechanics are
indeed that VAT is paid on raw materials delivered to the factory, and
levied on the finished goods sent to the wholesaler, and so on down the line
until Joseph Public buys the item with VAT included in the price. BUT at
every stage up to the final retail sale, the
manufacturer/wholesaler/retailer gets to deduct the tax he paid on purchase
(Input Tax) from the tax he collected on his own production/on-sale (Output
Tax), and only sends the difference to the tax collector. Only Mr Public
pays the full amount.
Little pinches that really add up is not a particular characteristic of VAT
- it applies to taxes in general!
Piers
-----Original Message-----
From: Jez Cunningham [mailto:jez@xxxxxxxxxxxxxx]
Sent: 10 October 2012 18:32
To: Olympus Camera Discussion
Subject: Re: [OM] OM. Customer Service $@*+!!!
Theoretically yes, on the value added in each step, but in practice it's
it's just a paper exercise.
On 10 October 2012 18:07, Bill Pearce <billcpearce@xxxxxxx> wrote:
> But the evil of the VAT is that it is added at every stage of
> production not just at the final sale. We do not apply sales tax to
> things used in manufacturing.VAT is added in little pinches that
> really add up.
>
--
_________________________________________________________________
Options: http://lists.thomasclausen.net/mailman/listinfo/olympus
Archives: http://lists.thomasclausen.net/mailman/private/olympus/
Themed Olympus Photo Exhibition: http://www.tope.nl/
--
_________________________________________________________________
Options: http://lists.thomasclausen.net/mailman/listinfo/olympus
Archives: http://lists.thomasclausen.net/mailman/private/olympus/
Themed Olympus Photo Exhibition: http://www.tope.nl/
|