Quote:
Originally Posted by JSWolf
VAT isthe same thing as sales tax. The only difference is that VAT is the same for the entire UK unlike the US where sales tax can be different for different states.
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No it is not.
VAT is added AT every step of the way, Manufacturer, wholesaler, retailer
Sales Tax is charged to the customer bases on the sale price.
Many states in the USA Have a 'State' sales tax.
Some, like Arizona, have a County level additional tax
Some, like California and Washington also have a CITY/Town additional tax rate.
(I cite these only because I had Tax ID's for filing)
For a USA retailer, this can be a nightmare.
Unlike the Simple: Food, Labor and all else.
there are specific exceptions or conditions.
CA has a 'Twinkie Tax'. A Sheet cake is Food (no tax). A slice of cake is a snack (taxed) A raw fish is food. Cook that fish and it is 'take out' (taxed).
AZ had so many different kinds of items taxed at the county level ONLY by some jurisdictions.
As a former Internet merchant, I applaud the European (and Canada) SIMPLE VAT method as opposed to the hodge-podge USA sales tax chaos.