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Originally Posted by RDaneel54
What is this massive tax break that Amazon has? The taxes are paid by the consumer, not Amazon. Were Amazon to charge the taxes, they would only be a funnel for the consumer, not the payer of the taxes.
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In Europe we pay VAT for everything, including internet purchases:
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A Value Added Tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its manufacture or distribution. The manufacturer remits to the government the difference between these two amounts, and retains the rest for themselves to offset the taxes they had previously paid on the inputs.
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I always viewed it as a tax that the manufacturer and distributors have to pay, and the money comes from the buyer, so the buyer indirectly pays it.