Is VAT more straightforward in Europe than USA?
I mean, as a European: have you visited the US and noticed that they don’t even include tax within the price (meaning you’ll pay more at checkout since that’s where it only appears)? It’s ridiculous, most countries include VAT within the price of their goods and services but. At least within the EU, VAT is included within the price making it final without any arithmetic.
I think it’s illegal in Europe to list prices excluding VAT, I know for sure it is in my home country Denmark, that makes it much simpler as a customer in Europe than in USA.
USA is a country of lawlessness, and lack of consumer protection, where sellers are allowed many “tricks” that are illegal in EU, it’s not just the VAT, but also misleading labeling and marketing.
In Finland businesses that mainly target their sales to other businesses can list with VAT 0%.
In the consumer market tge VAT is mandatory.
I think it is similar in Germany. Businesses buying from each other don’t have to pay VAT (so they can mark it as 0%, but it isn’t misleading either, because they actually pay 0%), so that the vat is only paid by the end consumer.
But I am just writing this from memory, so I could be off. Feel free to correct me if I’m wrong
Interesting how the format of your question is the same as this other user’s.
I mean, when it comes to cash: the common denomination people always use for daily transactions tends to be $20 (is that cap ATMs do not exceed?). Is it because no one uses higher denominations and stores refuse to accept them even though they are legal tender? If they’re barely used by an average person, why are they still being printed?
There are a few other new accounts with a similar posting pattern that I strongly suspect are LLM driven bots.
I guess it is some sort of experiment how to drive engagement? And people seem to fall for it 🤦
# About Community for asking and answering any question related to the life, the people or anything related to the USA. Non-US people are welcome to provide their perspective! Please keep in mind: 1) [email protected] [/c/[email protected]] or [email protected] [/c/[email protected]] - politics in our daily lives is inescapable, but please post overtly political things there rather than here 2) [email protected] [/c/[email protected]] - similarly things with the goal of overt agitation have their place, which is there rather than here # Rules 1. Be nice or gtfo 1. Discussions of overt political or agitation nature belong elsewhere 1. Follow the rules of discuss.online [https://discuss.online/] # Sister communities 1. [email protected] [/c/[email protected]] 1. [email protected] [/c/[email protected]] 1. [email protected] [/c/[email protected]] 1. [email protected] [/c/[email protected]] 1. [email protected] [/c/[email protected]] # Related communities 1. [email protected] [/c/[email protected]] 1. [email protected] [/c/[email protected]] 1. [email protected] [/c/[email protected]] 1. [email protected] [/c/[email protected]] 1. [email protected] [/c/[email protected]] 1. [email protected] [/c/[email protected]]
Yes they are.
The numbers on them are different for every town city and state though.
In EU they handle this by showing a bunch of prices on the same price tag. You choose the correct line according to where you are located and the price stands there.
Not very difficult.
And, most.importantly, done by all US clothes stores that operate in at least two countries in the EU.
AFAIK, VAT is collected by each vendor at every layer in the supply chain. Those collected taxes are remitted to the tax authority. Everyone in that chain - except the final, retail consumer - can reclaim their VAT expenses from the tax authority.
American-style “Sales Tax” is only charged to the final, retail consumer. Everyone else in the chain can issue a “tax exemption certificate” to the seller, who does not collect the sales tax or remit it to the tax authority.
In both systems, the tax and sales price have to be disclosed separately. Under VAT, you have to pay it now and reclaim it later (if eligible). Under Sales Tax, (if eligible), you don’t pay it; there is nothing to reclaim.
American here (who lives in Europe). America has a system of sales tax, where tax is collected by the specific state at the point of sale. Sometimes, the municipality collects sales tax as well.
The US does not have VAT, where tax is added cumulatively along the production or supply chain. As long as the manufacturer is selling to an intermediate (a retailer or distributor), they pay no tax for producing the item (although they will pay a tax on their total corporate revenue, real property the business owns, etc).
The sales tax is not listed on the price of the item. The reasoning is that the sales tax is not being charged by the retailer - they are only collecting it on behalf of the government. So the retailer only presents the price that they collect. Also, with the advent of internet sales, the price can vary based on the buyer’s location because sales tax is based on state and municipality; for internet purchases, the taxes are displayed on the checkout screen. This is the same in retail settings - the clerk will tell you the final price being charged to you.
States with higher sales taxes tend to have lower (or no) state income taxes. States with lower sales tax tend to have higher state income taxes or have higher taxes on other goods (like gasoline) or government services (higher fees). Certain categories of goods are exempt from sales tax - groceries (unprepared foods), some medicines, and in a few states I believe women’s menstrual products.
Taxes and tariffs are applied to manufacturers and distributors only for international import and export.
My opinion: I think not displaying the full price is deceptive. I think not taxing VAT along the supply chain is a regressive behavior that places more of the burden of funding society onto the individual taxpayer while leaving corporations with lower tax bills. The US consumer is bootlicker and repeater of corporate propaganda, so none of this will ever change.
I think not taxing VAT along the supply chain is a regressive behavior that places more of the burden of funding society onto the individual taxpayer while leaving corporations with lower tax bills.
VAT is reclaimed at every point on the supply chain except the final user. That final user pays the entire VAT. Europe doesn’t tax anyone else in the supply chain, as everyone else in the chain can reclaim any VAT they pay. The net VAT paid by everyone else in the chain is zero.
Even if the VAT was paid and not reclaimed, the end user would ultimately be the one paying it. Everyone else would just be passing on their costs - including that VAT - to that end user.
Sales Tax has the same net taxation on everyone in the supply chain. The difference is that the US doesn’t “pay and reclaim” the tax. The US just doesn’t pay the tax in the first place, except for the end user.
US does not have VAT, so it is clearly much more straightforward.
It has sales taxes, though. And that’s different.
LtDan
Deebster
somethingDotExe
mimavox
redlemace
poVoq
trollercoaster
Rivalarrival
Ediacarium
Herbal Gamer
smeg