• TheYang@lemmy.world
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    1 year ago

    because if the government spends 100€ on whatever, it gets 19€ back.
    So it only actually spent 81€.

    • ProcurementCat@feddit.de
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      1 year ago

      Careful: VAT is calculated additionally to the price of the goods bought. So when the government buys goods for 84€, an additional +19% VAT is slapped on top of it, which comes out to 16€, for a final payment of 100€. So only when the government ultimately pays 119€ on something, it gets 19€ back.