Quote:
Originally Posted by murraypaul
No it didn't.
Again, you do not understand how VAT works.
It does not affect directly the price the consumer pays. Changing the VAT level does not mean automatic change in prices, any more than changing the level of corporation tax would. It is not US sales tax.
The seller decides what price to charge, that is the price the consumer pays.
From that price, the seller has to remit a certain percentage to the government. That is what is controlled by the VAT level.
For a consumer, the concept of non-VAT price is meaningless. All consumer goods are (legally required to be) priced with VAT included, the displayed price is the price paid.
Non-VAT prices only have any meaning for business to business transactions.
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I know the price shown is the price paid. Before VAT was removed from eBooks, the price of £3.99 included VAT. With VAT removed, the price should now be £3.32. But the publisher raised the price. The £3.99 price is without VAT because VAT is no longer charged for eBooks. The publisher raised the price 68p to keep it the same as it was with VAT.
Your saying the price did not go up is wrong. The price of the eBook was increased. Granted, it's the same as with VAT but only because of the price increase.
Take sales tax in Massachusetts. The rate is 6.5%. Take an eBook that costs $3.99. The price you will pay is $4.25. If you are not paying sales tax, the price will be $3.99.
In the UK before the VAT removal from eBooks, £3.99 includes VAT. When VAT is removed, the price should then be £3.32. But because it's £3.99, that means the price was increased. How can you say the price was not increased? It clearly was.
I asked my wife and she agrees with me and she comes from the Scotland. She also knows how sales tax in the US works.