Quote:
Originally Posted by elcreative
Errr... all tax is paid for by the end user/buyer/consumer... businesses do not have a magic money producing wand to conjure up money to pay their taxes... and as far as VAT is concerned, everybody in the production/sales chain (that's registered) claims back every penny of VAT that they pay... it's only the las person in the chain that really pays the VAT and that is the buyer... it's a direct tax on consumption/usage...
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The reason why I said indirectly is because the money doesn't go directly from my pocket to the government (or whoever it is that ends up collecting it). It goes to the one that I buy it from, and they pay the tax.