Businesses also feel the impact of VAT, both as collectors and claimants. VAT-registered businesses charge VAT on their sales,...
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Businesses also feel the impact of VAT, both as collectors and claimants. VAT-registered businesses charge VAT on their sales, which they must then pay to HM Revenue and Customs (HMRC). However, businesses can reclaim VAT they have paid on their own purchases and expenses, effectively offsetting their VAT liability https://vatcalculatorsuk.co.uk/. This mechanism encourages compliance and ensures that businesses are not double-taxed on inputs used in their operations.
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