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Politics : The Trump Presidency -- Ignore unavailable to you. Want to Upgrade?

To: Katelew who wrote (4825)1/5/2017 1:13:05 PM
From: Steve Lokness  Read Replies (1) | Respond to of 356106
 
<<<<Not when the VAT is 19% and the sales tax is 9%>>>>

And, the effective sales tax rate is way less than the stated rate. Online purchases a growing segment of sales (see retail company share prices today!!) are often exempt from sales tax - once again making all those items a zero tax rate.

In googling the differences between a tariff and a VAT, I accidentally came across this piece;
Often referred to as the "goods and service tax", the Value Added Tax is distinctly different from the sales tax levied on exchanges.

economywatch.com



To: Katelew who wrote (4825)1/5/2017 1:14:16 PM
From: combjelly  Respond to of 356106
 
The producer, in my example an American auto manufacturer, pays the VAT when the car enters the European market

Correct. So does anyone who sells a new automobile there. Just like, in most states, when they sell an automobile here a sales tax is added. The only difference is that usually with a VAT, the tax is part of the listed price. Here, it is added on later.


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