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.

  • Rivalarrival@lemmy.todayEnglish
    1·
    3 days ago

    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.