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by lagadu 3904 days ago
That's how most of Europe does VAT: food, cultural and other essential products enjoy a very reduced VAT rate in many (but not all) countries here[1].

[1] https://en.wikipedia.org/wiki/Value-added_tax#Tax_rates

2 comments

There can still be VAT for things poor people buy. Is there chocolate on your biscuit? Then it's "luxury" and you have to pay VAT.
True, but at least the price label in the supermarket is the final price you pay, no nasty surprises at checkout. VAT is already included in the advertised price, so you know exactly how much you'll have to pay. Apparently, the same is not true of sales tax in (some states of?) the US.

It doesn't say the VAT rate on the label, but you can figure that out from your receipt after solving a bin packing problem :) Receipts contain a listing of the different VAT rates (e.g. in Germany, x€ at 19% and y€ at 7%)

> but at least the price label in the supermarket is the final price you pay, no nasty surprises at checkout

Er, that's how nearly everywhere does it. And is irrelevant to whether VAT or income tax should be the main way to raise money

That is just bullshit. Why books or "revenues from artistic works" has 10% but oil 50% VAT? Most people need heating oil more than paintings.
It's a matter of social policy. If you want to encourage more artistry one of the available ways is reducing taxes on it.

If someone is against it they're most welcome to vote against it.

So reduced VAT is not for 'essential' stuff.