I know it's how it works in Portugal and I wouldn't be surprised if it was because of some EU tax directive that it's like that. There are some exceptions, ofcourse.
That's surprising! So say I buy a bunch of produce from a farmer for my shop in Portugal. In the case where I sell it I'd expect to pay VAT on my margin. But how would my accounting differ between putting it in trash bags and putting it in a box labeled "free"?
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I'm sure this is not how VAT works where I live. You only owe tax on the value you added. If you give it away, value added is zero. It's in the name!
I know it's how it works in Portugal and I wouldn't be surprised if it was because of some EU tax directive that it's like that. There are some exceptions, ofcourse.
That's surprising! So say I buy a bunch of produce from a farmer for my shop in Portugal. In the case where I sell it I'd expect to pay VAT on my margin. But how would my accounting differ between putting it in trash bags and putting it in a box labeled "free"?