[psykovsky]

That's not what I said. I said the EU has sales tax. On everything, even work hours, if you're a freelancer and sell your time. They call it VAT. They could even call it a whistle for all I care, but it still is a tax on sales.

[walshemj]

VAT is not charged every thing some items are zero rated kids clothing for example.

[henrikschroder]

No, it's a tax on value addition. Hence the name...

[psykovsky]

What value do you add to a lettuce or a cabbage?

[henrikschroder]

The full value, since you bring it into existence as a farmer.

If you buy cabbages from a farmer and make cabbage soup, you are taxed on the value addition that soup making results in.

[psykovsky]

What about if you buy the soup and only put $1 more on it's price and sell it? What value did you add? Your profit, the one where you are already taxed? You still have to add VAT... Call it VAT or sales tax, it's a tax on the poor and should be killed with fire.