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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My understanding was that every link in the chain up to the final consumer both pays and collects VAT. So the retailer would either pay or be reimbursed the difference between the VAT they paid and the VAT they collected.