Quote:
Originally Posted by Pajamaman
I've read through the posts, but I remain confused. So the UK government has suspended VAT charges on ebooks. However, the prices remain the same (on Amazon at least) for books where the price is set by the publisher.
Who collects VAT? Amazon, at the point of sale, or the publisher before the customer buys on Amazon?
If VAT is no longer charged by the government, then where is this still-charged percentage of the book price going? Confused.
This might just be a slow response to the VAT cut by Amazon or publishers. But even then, will customers receive a refund after this is sorted out. Double confused.
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Every player in the chain has to calculate and report vat. It's a value added tax so it applies to what you sell for minus what you paid for it
If I buy something from you for £10 and sell it for £15 my value added is 5. If the guy who sold it to me for £10 made it for 8 his value added is 2.
As the saying goes, a camel is a horse designed by a comitttee. VAT is a euro-camel