Many EU countries have a “VAT” and like feel like this is kinda targeting poor people. Like, for the rich, this is insignificant, for poorer people, a (example) 20% tax would be a huge burden. Why do they do this?

🤔

  • Kazumara@discuss.tchncs.de
    link
    fedilink
    arrow-up
    1
    ·
    7 hours ago

    being a registered business they purchase for prices without VAT

    That’s not true, sorry. A business pays stuff with VAT included too, but they can later claim back the VAT they paid against the VAT they raised from selling stuff, so they don’t have to hand all of that over.

    • Bruncvik@lemmy.world
      link
      fedilink
      arrow-up
      1
      ·
      6 hours ago

      I’m personally not sure how it works. But when we were upgrading our bathroom, the tile shop added the VAT to the quoted sale price. I then asked a friend of mine who is VAT-registeted to buy it for us, and he got it from the same warehouse for the non-VAT price.