Follow the 100 — How VAT Actually Works Through the Supply Chain
VAT confuses almost everyone. This step-by-step walkthrough follows a product from raw material to final sale and shows exactly how VAT flows through each business in the chain. Watch who pays, who reclaims, and how HMRC ends up collecting exactly 100 in total.
How to use
Step through 7 stages of a supply chain. At each stage, see the transaction, the VAT charged, the VAT reclaimed, and the net amount paid to HMRC. By the end, you will understand why only the final consumer actually bears the cost of VAT.
Understanding Your Results
This tool is designed to help you understand a specific aspect of your business finances. The results are based on general rules and typical scenarios. Your individual circumstances may differ, so use this as a starting point for further investigation or a conversation with a qualified professional.
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Book a Free Discovery Call© Imperial Consulting Limited, trading as Grosvenor.Solutions. For educational and illustrative purposes only. Not financial, tax, or legal advice.