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In Spain it's 16%.
If you have a company you can get it back from anything you buy.
- You buy stuff for 1000?+16%= 1160 ? (paying that crap 160? more)
- You sell stuff for 2000?+16%= 2320 ? (recovering that 160? + 160? more in excess)
- At the end of your tax period, you return to the government the excess of VAT, so in that example, you return to the government that 160? in excess you got from your sales.
At the end you pay vat but also receive it and the excess is sent to the government so you don't end or gain anything from vat as company. The only fucked part is the final customer who pays the vat and can't recover it.
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