KruzeS on 04 September 2007
| reverie said: A company cannot reduce VAT, that's not true. You can make sure that you don't have to pay VAT twice by showing the tax office that your suppliers already charged you some VAT. In the end you pay VAT for every single cent of revenue you have, by paying either to the tax office or to the supplier (who will pay to the tax office or their suppliers in turn, all the way down to the silicon mine). |
You know that's probably exactly what he meant by "reducing VAT", right? You "reduce" the VAT you pay to the tax office, arguing you already paid some of it to your supplier.
Besides, some wholesale prices do come with VAT included, in particular if they're targeted to smaller retailers and/or go through an intermediary (wheras bigger retailers may buy directly from the publisher instead). This also varies from country to country and business to business, so there's really no way to know unless your into the process. As an example, I saw in some other thread someone who worked in retail saying this specific price was inclusive of VAT. But I wouldn't know either way.
Reality has a Nintendo bias.
