• stephan262@lemmy.world
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    4 months ago

    VAT is only a tax on foreign goods insofar as it is a tax on ALL goods irrespective of origin. So it’s not hypocritical as it is a very different thing.

          • Zabjam@lemm.ee
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            4 months ago

            That’s not how VAT works. As a business you pay VAT as an input tax. You can deduct that from your VAT liability at point of sale. The business is liable to pay VAT on the sale to the end consumer but can (and does) recharge it to the customer. Not a tax expert at all, so I might be off a bit - but I am sure that you don’t pay full VAT on every R&D, production, sale step along the process.