Are the customers the ones paying the businesses' taxes in the form of VAT?

[Starmix]

It is only my assumption that it is us, the customers paying the taxes of the businesses through VAT. I hate to see VAT, from 10 $ to 12 % in the pharmacy alone, excluding the other types of business that reach 15 % VAT. I doubt that the business owners through their accountants manipulate the VAT accountables from the customers from day 1 to day 365 in a year. I think some business operators do not declare the total earnings to the BIR, so the government is blind to know the real figure. Correct me if I am wrong.

 

[oliver991]

I think you're right on point. As consumers, we do bear the burden of VAT through higher prices. It's possible that some businesses might not declare their full earnings, which would mean the government is missing out on revenue. It's a complex issue, but more transparency and accountability in tax reporting could help ensure that businesses are contributing their fair share.

 

[Starmix]

I asked one accountant and she told me that their business collected three million pesos a month ( $ 65,000 ) for VAT alone. How much will it be when multiplied by 12 months? It is a huge money paid from the people. How much do they pay to the government's taxes?

 

[Laurentta]

I agree with you. I think it is actually we the customers who pays business taxes in form of VAT.

 

[Starmix]

The VAT store, mall or business gatherers is more than enough for a particular store, mall, or business to pay the taxes. Each of them might keep the extra for some hidden agenda.

 

[Augusta]

Yes this is where the transfer of burden comes in. This is why high tax on sellers isnt really good because they transfer the burden to the consumers

 

[Starmix]

Try to look at the receipt after you pay in the mall, you can see there the VAT and I multiplied it by the number of customers coming in a day for a month, the mall owners, can gather millions from VAT, so they make the customers crazy paying their taxes.

 

[Kross]

Value Adedd Tax is just the realistic way that my country can get the citizens to pay taxes. Every product and service incorporates it into their products and services.