Many companies explicitly pass VAT to the consumer. For example, I have to pay VAT as a line item on the rent for my coworking space.
VAT is the reason a MacBook is hundreds of dollars more expensive to buy in Europe than in the US.
I’m an American living in UK. I bought a jacket here, wore it home, and then forgot it, so I had my mom send it to be in the UK (where I bought it). She declared its value and so I had to pay £35 in VAT for a jacket I bought in the UK for £150.
VAT also makes it difficult for companies in a VAT jurisdiction to compete on price with companies in other jurisdictions, and for small businesses to sell internationally.
I’m not sure I’ve ever heard someone talk about how great VAT is. It’s a system you implement when your country fails to innovate and instead siphons off the innovation of others.
I don't like paying taxes either, but we have to fund our government and the services it provides somehow, right?
If you rent a space and buy a Mac for work you can probably get the VAT you paid back, deducting if from the VAT you add to your own invoices.
Income tax and VAT are the biggest taxes here, what I am saying is that income tax is worse because it hurts jobs directly. VAT does distort pricing internationally, as you say. If all countries would have the same it would be better for everyone.
It would be even better if we could tax capital and corporate profits more, but powerful forces work against that.
Of course we can also not sufficiently fund the government and gut it. We'll see in a decennium or two how that works out in the US.
VAT is the reason a MacBook is hundreds of dollars more expensive to buy in Europe than in the US.
I’m an American living in UK. I bought a jacket here, wore it home, and then forgot it, so I had my mom send it to be in the UK (where I bought it). She declared its value and so I had to pay £35 in VAT for a jacket I bought in the UK for £150.
VAT also makes it difficult for companies in a VAT jurisdiction to compete on price with companies in other jurisdictions, and for small businesses to sell internationally.
I’m not sure I’ve ever heard someone talk about how great VAT is. It’s a system you implement when your country fails to innovate and instead siphons off the innovation of others.