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by rahimnathwani 3654 days ago
UK VAT is also a charge on the buyer, and just collected by the seller on the government's behalf. It is not a tax on the seller. But B2C businesses must advertise prices that include this tax.
1 comments

So you're hiding from the consumer the fact that the govt is taxing 20% on your consumption. In the USA system, tax is clear and present. The difference in style can be associated to a republic vs monarchy style => citizens vs subjects
Nope, the VAT amount is required to be clearly marked on all receipts, at least in the European countries I've been to. It's just that the shelf prices have it included.

Besides, since there's usually only a couple of VAT rates, instead of a complex mix of city and state sale taxes, everyone is very aware of what the current rates are, and it's always a big point in national politics.

People in the UK are very aware of VAT. However we do like to know the total cost in advance of paying.

As an aside, many restaurants here have included service charges (but these are usually optional, so although they are shown on the menu you can choose to not pay)

I think also in Europe many do not see tax as pure evil.

The tax is not clear in both cases, but it is present in both cases. The difference is in one case (Nova Scotia, in this example) you walk up to the counter with $37.64 and pay 15% tax on the $27.65 portion because the $9.99 feminine hygiene products are exempt; you don't work out the tax in your head because you can never remember which items are exempt, you figure it out by looking at your receipt and see you paid $4.15 in tax. Meanwhile, in the Netherlands you walk to the counter with 43.38€ worth of goods and you pay precisely 43.38€. You again look at your receipt and see that you paid 2.46€ in tax (6% rate for food and medicine).

Certainly, people try to argue that Europeans don't realize they are paying tax, but this is simply false. In both cases, people know they are paying taxes; even foreigners realize it. The only real difference is that it is trivial in Europe to work out how much money will be paid for the goods picked up before getting to the checkout and there is no need to have memorized the tax code. The only thing you need to be able to do is add and you will know how much money you will need to pay.

Everybody knows VAT exists, how much it is and that's included in the price. And everybody complains every time it's raised because we see prices going up (sometimes more than they should) and we know there will be a domino effect on everything.
Normally receipts list prices without tax and then total with the tax. It's just what you see on the price tag is different.
That's not usually the case in the UK. I have never seen a UK supermarket receipt list individual prices without tax.