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Microchip as a company - my experiences

Discussion in 'Microcontrollers' started by picbits, Jun 17, 2008.

  1. Thunderchild

    Thunderchild New Member

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    I'm just saying they could be more informative or aren't us hobbyists that important to them ? hm thats the impression i got who is to say whether rapidonline serves hobbyists or companies ? they have a ver clear and plain selection box saying view with or without vat I'm sorry but its just devious to no give information until the VERY LAST page and then bang your order suddenly doubles all other companies plainly state what their minimum order is and what postage costs not wait until you have filled in all you debit card details and got to that very last page where you say "I do" only to find your order now costs twice, I don't mind the price just dislike having the p!ss raken out of me ! I could have ordered the pickit2 and the starter board for the same price but after 5 pages of filling in the order i couldn't be bothered to cael the order and start from scratch, had they been upfront i would have spent another 5/6 £ and still paid the same as i would have made the minimal order and not needed to pay handling I'm sorry but thats not what i call a carring company ! I feel no loyalty to them at all after the way I was treated and the response I got to my querry
     
  2. coimbatorean

    coimbatorean New Member

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    Hi,

    I am from Coimbatore, TamilNadu, INDIA and plan to make my own treadmill, will anyone out here be able to give the specs of the motor and control ckt
     
  3. Pommie

    Pommie Well-Known Member Most Helpful Member

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    This isn't correct. Everyone in the above example pays VAT on the value that they added hence the name Value Added Tax. Take the sawmill, they can claim back the VAT on the wood they bought but have to pay VAT on the wood they sell. On the basis that few businesses operate at a loss they effectively pay VAT on their markup.

    A worked example, a shop buys an apple for 20p+Vat and sells it for 30p+Vat. They can claim back the 3.5p on the purchase but have to pay the 5.25p on the sale. They pay 1.75p in actual Vat.

    Mike.
     
  4. dave

    Dave New Member

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  5. Nigel Goodwin

    Nigel Goodwin Super Moderator Most Helpful Member

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    You're missing the point, while the preceding business charges VAT (and pays it to the government) the business who buys it claims that amount of VAT back. And because the final product (a paper bag) is given away, the final customer doesn't pay VAT on it.
     
  6. Pommie

    Pommie Well-Known Member Most Helpful Member

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    The point is that each business (except the last) pays more VAT than they claim back. The net result being that lots of VAT is actually paid.

    Mike.
     
  7. Nigel Goodwin

    Nigel Goodwin Super Moderator Most Helpful Member

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    No each company claims the same about back that they pay,
    but it's the previous company that actually passes it on to the VAT office.

    Say you are the lumber jack, you sell me a tree for £100+VAT (£117.50), you then pass the £17.50 to the VAT office (so you have the £100 you wanted). I then claim back the £17.50 VAT, so the VAT office have made nothing.

    If I then process the tree and make paper, and sell it for £200+VAT (£235.00), I then pass £35 on to the VAT office, and keep £200 myself. The company I sold it to will claim back the £35, so the VAT office have made nothing again.

    It's only when the final product is sold to a non-business customer, that he pays VAT, and can't claim it back - and in the example I gave, where it was paper bags given away free, there's no VAT paid on nothing, so the VAT office have made nothing on all the transactions.

    Bear in mind VAT isn't paid per transaction, or on a daily basis, probably only six monthly or quarterly - so it's only theoretical payments, shown in the paperwork.
     
  8. ericgibbs

    ericgibbs Well-Known Member Most Helpful Member

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    hi,
    I always paid more company VAT than I claimed back.
    Obviously I claimed back the VAT part of the total component cost.

    The reason, the added value to the materials bought in, when they are sold as part of a finished product.

    Also had to pay VAT on the Book keepers cost, for calculating the cost of the VAT.

    You cant win, we had a VAT auditer in, every 2 to 3 years.
     
    Last edited: Jun 30, 2008
  9. Pommie

    Pommie Well-Known Member Most Helpful Member

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    I see your point now and you are correct in this case. However, whilst the paying and claiming back of VAT appears to have no net effect, you, as a company, are £17.50 worse off. You have paid VAT. The fact that the last person in the chain is effectively a charity makes this an anomalous case.

    Mike.
     
  10. Nigel Goodwin

    Nigel Goodwin Super Moderator Most Helpful Member

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    Why are you worse off?, you sold a product for £100, you made £100 - the VAT is nothing to do with it, which is why all businesses show it separately, and adverts for commercial products are all excluding VAT.

    As a retail shop all our advertised prices have to include VAT, this is required by law - because to do otherwise would confuse the customers (and this did happen in the early days of VAT). However, our service prices and invoices are all VAT exclusive, with the VAT shown separately at the end and added on.

    That was the point of the example, usually the last link in the chain pays 17.5% VAT which is paid to the government.
     
  11. Boomslang

    Boomslang Member

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    At least I know more about VAT now.... :)
     

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