Netflix paid £3.2m in tax on £940m of UK subscription revenue(theguardian.com)
theguardian.com
Netflix paid £3.2m in tax on £940m of UK subscription revenue
https://www.theguardian.com/media/2021/jan/22/netflix-paid-32m-in-tax-on-940m-of-uk-subscription-revenue
3 comments
In the UK they have VAT, a sales tax on every transaction.
So if you buy a thing for $1000 with 10% VAT, you actually pay the seller $1100. You then sell it for $1200 + 10% Vat = $1320 you collect. You remit the $120 VAT you collected to the government, but you first deduct the $100 VAT you paid as an input tax credit = $20 paid to government.
Works out like sales taxes, where intermediate buyers have sales tax exemptions, but it is harder to cheat as there are no VAT exemptions = if you are exempt = Foreign Embassy, you file a VAT refund claim to the government, same if you export to someone outside your VAT area.
So Netflix are another company, like amazon, that are now paying tax on revenue?
Revenue doesn't mean profit.
Netflix makes hardly profit, so thus pay little tax
Netflix makes hardly profit, so thus pay little tax