You are correct in essence but that is not exactly how it works.
VAT is paid on the gross margin on each transaction. It only looks like the end user is the only one to pay because for that transaction the gross margin is the whole of the price. Car makers are to a large extent assemblers of ready made parts so some, admittedly small, VAT is certainly paid at various points in the supply chain.
VAT is paid on the gross margin on each transaction. It only looks like the end user is the only one to pay because for that transaction the gross margin is the whole of the price. Car makers are to a large extent assemblers of ready made parts so some, admittedly small, VAT is certainly paid at various points in the supply chain.
https://en.wikipedia.org/wiki/Value-added_tax#Comparison_wit...