It's "value added" in the sense that the company is only liable for tax on the value they add to the product as it passes through their hands.
Eg if you spend �10 (including vat) on wood to build a table which you sell for �15, you're only taxed on the �5 of 'value' you 'added'.
This isn't much help to Clint & co, as they don't use much in the way of raw materials, but they should be able to claim back the vat from expenditure on things like computers and stationary.
It's essentially just slightly more involved sales tax.
Regards,
Tim.
···
"Edward A. Dimmick" <dukefenton@earthlink.net> wrote:
And just what 'value' is this adding to whom? IMNSHO any government
which considers this a good idea for revenue raising has got their
cranium firmly lodged in their fundament. Even hating the taxman is
really killing the messenger; we should be leveling our vitriol at the
bastards who put the tax in place. They should all be taken out and shot...