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Value added tax
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As an ordinary consumer and employee you do not really notice VAT.
Not until you start up your own business - then VAT becomes an important issue.
Business to business
When two businessess are negotiating prices, they always do so exclusive of VAT. This is because VAT has no influence on a company´s internal accounts. Companies know, that VAT paid to another company is deductible in the VAT accounts.
However, if you sell products or services to consumers you should remember to add 25% to the amount you have estimated as the optimum price. Failing to do so, entails that you must pay the VAT out of your own pocket.
Your biz and consumers
If you own a shop, restaurant, or service business approaching consumers, you must always state your prices inclusive of VAT.
If your business deals with consumers and businesses, you must indicate clearly whether the prices are inclusive or exclusive of VAT.
Thomsen
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