15/10/2021
VAT could also be called end consumer tax (or: private consumption tax), because the government only wishes to charge private end consumers, i.e. the buyer of a product/a service. If, for example, an artist liable to VAT buys a folder at a store, he/she only needs to pay the tax if he/she purchases said folder as a private individual. The government does not intend to apply VAT to goods and services purchased in a professional context. It would be too complicated, however, to collect the tax from private consumers. Therefore, the state collects the tax not from the artist but the seller. Accordingly, in addition to the total, the receipt also shows the underlying net price and the corresponding VAT. When making the purchase, the artist initially pays the VAT and the seller forwards it to the tax authorities.
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