hondo1375
Posts: 157
Joined: 3/12/2005 From: London, UK Status: offline
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quote:
ORIGINAL: Shark7 So if you have (for example) 5% added at each level, I wonder how much the government is making off each end user sale? 5%. It works like this in the UK: If you imagine company B buys raw material off company A to make something, company A charges company B 5% VAT(on your example), and company A remits that 5% to the government. If company B then sells that manufactured item on to a retailer, company C, then company B can claim their 5% VAT back, but charges company C 5% on the sale (and it will be 5% on a more valuable item, since the manufacturer has added value to the raw materials by making it into something of greater market price). So far, the government has made nothing out of it. This game of pass-the-parcel ends with the poor sap who is buying it for private rather than company use, and they get the final, non-reclaimable, VAT bill - 5% on the fully value-added item. The last seller remits that amount to the government, and that is the only money the government keeps.
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First wargame: Jedko's 1st edition "The Russian Campaign". First computer wargame: don't remember the name, but it was on punch cards.
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