Reply to post: Re: The article author is part of the problem.

Re: The article author is part of the problem.

"This is incorrect. Companies DO NOT PAY VAT."

I am almost 100% this is not technically correct either. It varies with the company size and the country.

Companies:

- do not have to pay VAT on some purchase (if both side have a VAT number and can sell VAT free for the good concerned). This gets even more complicated for purchase across countries

- have to pay VAT on certain purchase, but can claim it back on their VAT balance with the tax man.

- cannot claim back VAT on all expenses (e.g. it used to be the case to not be able to claim back VAT on French motorway tickets and I think, still to date, you can only recover a part of VAT on petrol in travel expenses)

- in the UK, on small companies, you cannot claim back VAT on many expenses (I am just thinking of some expenses where we cannot claim VAT back with building free-holding company I belong )