Quote:
Originally Posted by jbjb
The actual payments to the government are spread along the chain of added value, but all the cost at the end of the day is borne by the consumer.
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Exactly so — all the VAT payments made by VAT-registered businesses can be claimed back from the government. You also pay to the government all the VAT you collect, which usually comes to more than you're claiming back.
On one very bad quarter, I have received a VAT refund. Unless your business output is zero rated, ending up with a VAT refund is very bad news — you've spent more than you've earned!