Ha
Quote:
Originally Posted by DuckieTigger
That is not how I understand it to work. The 20% of the sales price is not covered by the last seller in the chain, but divided among everybody, including all middlemen. It ends up 20% of the product price, but everybody pays a portion of that for their own profits.
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Nice to hear from you Duckie. I'm no expert on the UK Vat but most taxes of this kind work by allowing credit to earlier sellers in the chain for the VAT they have paid. The final seller is indeed responsible for payment of the VAT which is usually passed on to the final purchaser. I'm glad to be corrected, but a system such as you describe would I suspect be complicated and unnecessarily onerous, with the same result. Happy to be corrected if I have it wrong.