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Doesn't seem correct to me somehow .
Vat is collected by a business on behalf of the Gov ?
If a business pays vat on an item ,sells it on without adding said vat, the business has effectively stood the amount out of its profit margin?
John Wilkinson
It makes no difference because a business reclaims the VAT it has paid.
All very complex .
If retailer buys an item for £1 and sells it for £2 he tells you the profit from the sale is 50% not 100% as would appear ! He works backwards ie sells @ £2 buys @ £! = 50% profit
All very complex
John Wilkinson