Quote:
Originally Posted by JSWolf
The difference between VAT and US sales tax is that VAT has to be included in the price. Sales tax is added at point of sale.
Both are a tax. If you reduce the tax to 0%, then the prices should be lower as you won't be paying this tax. How is it hard to believe that if you remove the tax, the price is lower. The fact that it's not lower is because the company decided to raise the price.
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Quote:
Originally Posted by Mnementh
No that isn't the difference VAT != Sales Tax
You are correct in that Sales Tax is added at the point of sale, and that VAT is included. The reason VAT is not added at the point of sale is because it's added all along the chain and even more confusingly can be different amounts at different points in the chain depending on what value you are adding and what tax rate that value attracts.
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Sorry to disagree with both of you but the old Canadian Federal Sales Tax was not added at the point of sale but rather, like the UK VAT, was buried in the price charged at the point of sale. Once more, the tragedy in the slaying of a beautiful hypothesis by an ugly fact.