Originally Posted by Mono
I do not know situation in US or Canada, but in Czech Rep there are some VAT sectors where the customer is responsible for paying VAT (instead of supplier) to the state.
It is sort of strange, but generaly the state thinks that it will get the money from customer more easily than from supplier (which might get bancupt, ...).
Generaly, VAT is absolutely absurd tax, which should not exist.
At least in Canada (where I live now and I had the curiosity to check) that was introduced (afai rememeber) as a tax to help with the war efforts. After that it simply stayed!
At this moment the state taxes every transaction (food and some other goods excepted) just because they can. I do not see the sense of it as a mean to pay the expenses to run the country and the government. That is once addressed by the income taxes.
However collecting that from buyers is insane since it is easier to get if from an aggregation point like sellers which or suppliers of goods or services since that is a bigger account. It might be easier to prosecute a business than to go after each PF4Mobile who refuses to return that VAT with his taxes. My 2c :-)