Quote:
Originally Posted by dordale
EA--
The seller collects sales tax here in the United States as well. I've never heard it called VAT over here.
But I think the big difference between US Sales Tax and VAT charged elsewhere is that the US Sales Tax is state by state as Elfwreck posted, whereas elsewhere VAT is usually/always(?) a national tax. Also, the amount of sales tax is not included in the price, whereas from my understanding (very limited admittedly) of VAT is that the price includes VAT. When I go to purchase something here in Sacramento, California the price tag will say $1.00, but I'll be charged $1.09.
And as Elfwreck also said, you are *supposed* to pay tax on items you purchase from other states through mail order, etc, but nobody does. There is a place on the California state income tax return where you are supposed to report any items you purchased from out of state without paying sales tax, but again nobody does this...At least nobody I know! And, I have been known to purchase higher cost items (tires, computers, etc) when I visit my Mother in Law who lives in Oregon to avoid paying the sales tax all together.
dordale  |
Thank you
VAT is what I have seen the Danish term translated into, so I just assumed it was 'universal English'. Perhaps it's British.
And thanks for the run-down on how it works in USA. In EU, a seller collects VAT if they sell more than a certain (large) fixed amount to another country in the EU. So if you buy from some big store like Amazon.co.uk you definitely pay VAT, but usually not if it's a small one. I'm NOT surprised that no-one reports their inter-state purchases