The Friendly Money Making Board

[plastipunk]

VAT (value-added-tax)

http://www.investopedia.com/terms/v/valueaddedtax.asp


I'm certainly no expert, but it sounds like the two paragraphs in this definition of VAT contradict each other?


First paragraph:

"The amount of VAT that the user pays is the cost of the product less any of the costs of materials used in the product that have already been taxed."



As compared to this excerpt from the second paragraph:

"For example when a television is built by a company in Europe the manufacturer is charged a VAT on all of the supplies they purchase for producing the television."



Maybe materials means materials and supplies means the supplies, etc. a manufacturer pays for to bring the materials together to create the final product?

Or then again maybe it's just another way to keep the tax paying serfs confused while the politicians find yet another way to fleece us?