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Comment by butterknife

17 days ago

You are right I suppose. We pay it and then we can get some of it returned.

You get all of it returned. 100% of the VAT you paid on things you as a company bought you'll get back from the tax office.

And when selling products, you'll send 100% of the VAT collected from consumers to the tax office.

VAT doesn't affect a company (besides the bookkeeping).

  • If thats the case, why not just register a business, and make a bunch of purchases so you don't have to pay VAT?

    • Because that would be an obvious loophole and has been made illegal almost everywhere (i.e. you can't have a business that isn't aiming for profitability).