From: Jonathan Bryce 
Newsgroups: uk.finance
Subject: Re: Polish VAT scam
Date: Mon, 24 Jan 2005 00:48:55 +0000

Richard Buttrey wrote:

> Maybe I'm losing the plot here. Most businesses don't suffer one way
> or the other because of VAT - apart perhaps from the cashflow effect.
> So why would they be particularly bothered about on which total VAT is
> levied? Surely they're 'bothered' since they see this as a way of
> reducing the cost to the customer who chooses to pay by cc. In your
> example they are charging £100 whatever the payment method, there is
> no advantage being given to the customer, and so why are they
> exercised by it?

Most customers in retail shops don't get to claim the VAT back, so if they
can charge £100 in total, and send less of it to HMCE, there is more left
for the shop to keep.