Who pays the most tax?

[SpontaneousOrder]

If you are a business you are allowed to reclaim the VAT spent on buying things. So you don't get a compounding up of VAT. VAT is a tax on private consumption not production.

Exactly. The producers don't care, but the end consumer pays all of that compounded VAT.

[speling bee]

Exactly. The producers don't care, but the end consumer pays all of that compounded VAT.

No. The VAT doesn't compound.

[SpontaneousOrder]

No. The VAT doesn't compound.

As in the profit margin is applied net of VAT, in the knowledge that the VAT will be refunded?

[speling bee]

As in the profit margin is applied net of VAT, in the knowledge that the VAT will be refunded?

The price is applied net of VAT and the VAT paid is reclaimed by the next company in the supply chain.

[SpontaneousOrder]

The price is applied net of VAT and the VAT paid is reclaimed by the next company in the supply chain.

Sorry... i was dashing to a meeting when I wrote, and now i'm out I see I was writing bollocks.

The idea I was meaning to convey before I got distracted and confused myself was that the costs of VAT is compounded at every stage in the supply chain.
Where a single tax on the end consumer would involve one tax collector, a VAT in a supply chain 20 steps long where each supplier has to collect tax on the value they've added (with outputs-inputs summing 20% at the end) means that there are now 20 tax collectors.

I.e. more tax collectors = more costs of doing business, which the final consumer has to pay for.

How much of an actual difference in price that makes for everyday items I don't know - but if it's the kind of thing that puts off would-be contractors then perhaps it puts off candlestick makers too. So that's an increase in the cost of doing business & a barrier to entry as all bureaucracy is - all increasing the final price the consumer pays.

So maybe not 'killer'. But still perhaps disproportionately inflating the cost of the poorest people's consumables.

[d000hg]

Sorry... i was dashing to a meeting when I wrote, and now i'm out I see I was writing bollocks.

Is this to be applied to all your past posts?

[SpontaneousOrder]

Is this to be applied to all your past posts?

If you like. As someone who believes in magic I doubt it makes much difference to you.

[d000hg]

If you like. As someone who believes in magic I doubt it makes much difference to you.

No I don't. Lying is a violent act, I'm surprised at you.

[SpontaneousOrder]

No I don't. Lying is a violent act, I'm surprised at you.

Lying isn't violent. Nor is it necessarily any other kind of aggression.

[d000hg]

So we've found something which isn't violent at last. Phew.