So its cheaper for a non vat registered person to purchase from another non vat registered person because the vat added is only the initial payed on cost, the markup is therefore vat free.
So then why is it more expensive for a vat registered company to purchase from another non vat registered person. I know they are unable to claim the VAT back but they still have to add vat it when they sell it. could they not just not charge the VAT on their sale? or could they just place vat on their markup?
