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To: An.American.Expatriate

“the price does NOT change due to embedded VAT taxes as they are offset”

Offset by what?


57 posted on 10/15/2011 10:57:30 AM PDT by Tublecane
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To: Tublecane
Offset by what?

They are offet by VAT paid by the seller when he pruchased the product.

In tax law, VAT is treated as a 'transitory item' for producers, so that the deductible VAT which a producer has to pay on his purchases does not represent a true cost component for his own calculations and can be regarded merely as an advance installment of the VAT which he has to calculate on his own turnover, thus leaving him only the difference to pay to the tax office.

77 posted on 10/15/2011 11:33:42 PM PDT by An.American.Expatriate (Here's my strategy on the War against Terrorism: We win, they lose. - with apologies to R.R.)
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