Copy to dev-ML was missing
> From: "Chris Howe" <
[hidden email]>
> > Thanks for the responses, I guess I wasn't clear on my
> > question. If we agree on a price that is subject to
> > VAT, at who's discretion is it that the agreed price
> > is VAT inclusive/exclusive.
> >
> > ie,
> > the base price is 100
> > VAT = 10%
> > final price = 110
> >
> > When two parties agree upon a price, the agreed price
> > can either be 100 VAT exclusive or 110 VAT inclusive,
> > it's the same agreement and the end payment is 110 in
> > both situations. Who says that you have to list each
> > item on an invoice as VAT inclusive? Is it government
> > mandated that prices are promoted as VAT inclusive or
> > is it simply the custom of the marketplace?
>
> For an agreement (B2B you mean I guess, because there is no agreement in retail and there prices are fixed unilateraly - not in
some
> parts of Africa BTW - always VAT inclusive) price are always VAT exclusive because only "end users" (customers) are paying VAT.
> In fact people that collect VAT for a tax authority (in the context of their work, me for instance) do not pay VAT for what they
> need in their business (they pay but when the send back VAT they have collected they deduce VAT they have paid). Of course ASA I'm
> going to buy bread I will pay VAT and will never see that money back (some are juggling with that but - no only with bread of
> course -, I already did see bad results, as everybody know : juggling is an art ;o). Some might say that it's not really true that
I
> never see my money back : hospitals, roads, schools, etc. : 43% of them come from VAT in France.
>
> HTH
>
> Jacques
>
Locked
