Okay so they will use less stuff to make each unit to sell at the current price and kid you on that they are absorbing the VAT. Some raw materials are subject to VAT and some are not.
At the end of each three month trading period, or by arrangement each month, a firm makes a VAT Return.
On it are the Net Sales and the sales Vat on VAT rated items giving total Sales subject to VAT.
Also it shows bought items plus the Vat involved buying them. giving total Purchases subject to VAT.
The buying VAT is deducted from the Sales VAT and the firm pays the difference.
So the size of the bar is completely irrelevant!!!
No comments:
Post a Comment