My American Brethren! Can you explain this to me?

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theriddlen

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Apr 6, 2010
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7% VAT? Ehh, you are lucky, guys. In poland, VAT is always included in price, but we have 23% :(
 

nothinghere

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Aug 9, 2010
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XJ-0461 said:
The whole "sales tax" thing. When buying stuff, it says one price when you see it on the self, right? But then when you take it to the cashier, it adds like 7% of the price to whatever you're buying, yeah? How does that make sense? My reasoning for asking this is that I'm going to Hollywood for a holiday next year, and I don't want to get caught out when I try to buy something.

So I'm asking any Americans reading this, why do shops in your country do that? Is there some legal reason why it happens? Do all shops do that over there? And for other people not from America, does this happen in your counrty, or does it make any sense to you? It's something I can't get my head around on my own.

EDIT: To clarify, what I'm basically asking is why can't American shops include VAT (or thier equivalent) in their prices?
I think the states have to provide a certain amount of money to the government and each state chooses different ways to do this. States with no sales tax usually have higher land tax and etc..

I have no idea why they have it set up like that though.
 

inflamessoilwork

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Jul 14, 2009
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Not all things have sales tax, general groceries, produce, meat, canned foods, etc, all do not have sales tax on them. At least here in California
 

Escapefromwhatever

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Feb 21, 2009
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It's a simple tax on all items sold. It says the price before tax on the shelf, because that is the price the store is charging, and the store cannot control sales tax. It's really not that bad, though, just a few cents added on to each purchase.
 

Daselthechaz

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Jun 16, 2010
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The reason why none of the full prices aren't listed anywhere is fairly simple: the taxes aren't uniform ANYWHERE. Sales taxes aren't simply collected for the federal government, but also for state and local bodies as well. It is literally and quite often possible that two stores less than a mile away from one another will have slightly different (we're talkin' 0.1-0.25% difference here) taxes due to local ordinances that are not only zone specific, but temporary.

Speaking of which, if you're headed to California, be prepared. Of the states of the union their sales taxes are about the highest, rounding out to around 10% wherever you go in the state. Good luck with that, and may the math be with you.
 

Kopikatsu

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May 27, 2010
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Actually, each state has a different sales tax amount and what they tax.

I can't recall any specific examples, but I remember going to Oregon from California whenever I needed groceries, since sales tax was lower.

Other states even add a 'Sin tax' where tobacco and alcohol products receive an additional tax on top of the sales tax.

The only thing the government isn't allowed to add tax to are 'essentials' such as water and some fruits/vegetables.
 

DazBurger

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May 22, 2009
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Aby_Z said:
Taxes. There's a little bit added to the cost of everything. Yeah, it'd probably make more sense if they just included tax into the full price you see, but then that'd require a little more math.
Yeah it would :p
Thats what they do here on Denmark.. And prolly the rest of EU ^^
 

dlawnro

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Jul 2, 2010
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8.25 is the general rule of thumb, but
Agayek said:
XJ-0461 said:

PS - In California, the sales tax is 9.5% last I heard.
8.25 is the general rule of thumb (we had an increase somewhat recently), but it varies from place to place, which is exactly the reason they don't just include the tax in all the labels. I mean, the U.S. is REALLY FUCKING BIG, so printing different labels for each area with different tax rates would be a huge pain in the ass for big national companies.
 

Zeromaxx

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Jul 2, 2008
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I work as a cashier to help curb the eventual huge cost of college, I just consider it my chance to giggle at people who don't pay attention.

Phoenixlight said:
Palademon said:
You mean VAT? Yh, we had that in England >>
Value Added Tax is 17.5%, it's not added to everything and it's included in the price of the item.
Well shit, sales tax is 6% here in Michigan. For the first time I can say I'm glad I don't live in England.
 

kwagamon

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Jun 24, 2010
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It's just the government's way of making a little scratch off of the stuff you buy. Just bear in mind that the display price is a little lower than the actual one and you'll be good. Plus several family business stores I go to have the tax included in their price tags.
 

Assassin Xaero

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Jul 23, 2008
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Taxes is different in every city and state. Instead of doing something logical, $49.99 looks better than $53.29 (and this is America, so you know everything is about looks), and people think it is cheaper, so they buy it.
 

Divine Miss Bee

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Feb 16, 2010
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XJ-0461 said:
EDIT: To clarify, what I'm basically asking is why can't American shops include VAT (or thier equivalent) in their prices?
because the total sale is what is taxed a certain percentage, not each item. does that make sense?
 

PissOffRoth

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Jun 29, 2010
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Retailers want to make things seem as cheap as possible. 'Seem' is the key word there. It's just business, that's all. It's the same reason that everything is $X.99 instead of just adding a cent and making it an even dollar figure. Because when you see $14.99 as compared to $15.00, your psyche perceives the item that costs $14.99 to cost an entire dollar less than the one that was $15.00, even though it only costs a cent less. Stupid brain and its speed reading...
 

Zapotec

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Aug 29, 2010
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In California, sales tax differs from city to city. So if I buy something that's marked 10 USD here it will be 10.75 USD and the next town over it will be 10.80 USD. :) The difference comes from what the people in the town have voted for and what they need. I don't mind paying because the money goes to keeping the libraries open, etc... Also, groceries, at least here, are not subject to sales tax. I think it's probably better marketing, or something, for retailers to mark a product $.99 rather than $1.07 and that's why they don't add it themselves. It would be nice, though, just to pay the price as marked :))
 

whittaker

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Jan 12, 2010
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25% tax on almost everything in Sweden, Denmark, Norway, Finland, Island (25,5%!) and Faroe Islands. (source wiki)
Exceptions for Sweden: Groceries 12%, newspapers and magazines 6%

Still feel like living here? The girls are great and to us living her it's acceptable, but how about YOU?
 

Gardenia

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Oct 30, 2008
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7%? I need to move to the U.S.
Here we have a sweet 25% VAT, unless it's food, then it's 12,5%.