this post was submitted on 28 Mar 2026
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I mean, as a European: have you visited the US and noticed that they don't even include tax within the price (meaning you'll pay more at checkout since that's where it only appears)? It's ridiculous, most countries include VAT within the price of their goods and services but. At least within the EU, VAT is included within the price making it final without any arithmetic.

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[โ€“] smeg@infosec.pub 7 points 14 hours ago* (last edited 14 hours ago) (1 children)

American here (who lives in Europe). America has a system of sales tax, where tax is collected by the specific state at the point of sale. Sometimes, the municipality collects sales tax as well.

The US does not have VAT, where tax is added cumulatively along the production or supply chain. As long as the manufacturer is selling to an intermediate (a retailer or distributor), they pay no tax for producing the item (although they will pay a tax on their total corporate revenue, real property the business owns, etc). If they sell directly to the consumer, they must charge sales tax.

The sales tax is not listed on the price of the item. The reasoning is that the sales tax is not being charged by the retailer - they are only collecting it on behalf of the government. So the retailer only presents the price that they collect. Also, with the advent of internet sales, the price can vary based on the buyer's location because sales tax is based on state and municipality; for internet purchases, the taxes are displayed on the checkout screen. This is the same in retail settings - the clerk will tell you the final price being charged to you.

States with higher sales taxes tend to have lower (or no) state income taxes. States with lower sales tax tend to have higher state income taxes or have higher taxes on other goods (like gasoline) or government services (higher fees). Or some combination thereof. Certain categories of goods are exempt from sales tax - groceries (unprepared foods), some medicines, and in a few states I believe women's menstrual products.

Taxes and tariffs are applied to manufacturers and distributors only for international import and export.

My opinion: I think not displaying the full price is deceptive. I think not taxing VAT along the supply chain is a regressive behavior that places more of the burden of funding society onto the individual taxpayer while leaving corporations with lower tax bills. The US consumer is a bootlicker and repeater of corporate propaganda, so none of this will ever change.

[โ€“] Rivalarrival@lemmy.today 1 points 10 hours ago

I think not taxing VAT along the supply chain is a regressive behavior that places more of the burden of funding society onto the individual taxpayer while leaving corporations with lower tax bills.

VAT is reclaimed at every point on the supply chain except the final user. That final user pays the entire VAT. Europe doesn't tax anyone else in the supply chain, as everyone else in the chain can reclaim any VAT they pay. The net VAT paid by everyone else in the chain is zero.

Even if the VAT was paid and not reclaimed, the end user would ultimately be the one paying it. Everyone else would just be passing on their costs - including that VAT - to that end user.

Sales Tax has the same net taxation on everyone in the supply chain. The difference is that the US doesn't "pay and reclaim" the tax. The US just doesn't pay the tax in the first place, except for the end user.