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by MandieD 1594 days ago
After spending most of my adult life in Germany, I have to be extra-vigilant when doing anything with money back in the US - from remembering that the prices on the shelves are several percent lower than what I’m actually going to have to pay (while being way lower than VAT, sales tax is not included in prices!) to anything to do with cellphones, and then stuff like this.
2 comments

On the other hand, after growing up in the US I have to do the same when shopping in Germany or Switzerland. It’s almost unheard of for stores here to offer compensation such as a refund or exchange for many situations commonplace in the US, and many customer service interactions for other things like a phone bill have exhibited stubbornness to arbitrary policies that borders on hostility IMO.

I’m not sure sales tax excluded from prices is a matter of vigilance if it’s a nearly-universal national norm. It’s a bit like someone from the US complaining about being charged for bottled water at a restaurant in Spain after assuming they’d receive free tap water.

No, I think this is about mental exercise. Do I have to go shopping with a calculator to know how much I am spending?

To me personally it's weird. I come to shop with $5 but I don't know what I can actually buy...

Yeah, I understand. It's definitely not ideal and I don't want to sound like I'm condoning it because it really should be improved. I'm just not sure there's an obvious solution given the US/Canadian regional/local autonomy over sales taxes, but I'm glad to hear ideas. Most towns in California, for instance, have their own sales tax rates and while this could obviously be accommodated in retail spaces (at the cost of confusing national advertising?) it makes displaying prices rather complicated on online marketplaces which currently add taxes once a shipping address is entered during the checkout process. In contrast, despite the reasonable regional autonomy in Switzerland (not too dissimilar from states in the US) a national VAT rate avoids this issue.

The obvious exception is for marketplaces that sell to other markets. For instance, the prices on Amazon.de (Germany) change if a Swiss shipping address is entered due to the different VAT rate.

What's so alarming about us not putting sales tax on products? I grew up in the US but in a non sales tax state so my experience until I was 25 was the same as yours. When I later moved to a sales tax state I knew the price was going to be ~5-10% higher than what was printed but I got used to it very quickly.

I hate to stereotype but I've found Germans in my experience to take particular offense to this practice. I'm married to someone from the UK and British people complain about this as well but probably only 1/10 as much. I feel like if I asked most Germans their least favorite thing about the US this is would be the MOST common response. I don't get it.

How can you not get it? It's completely annoying - stores show a price that is not the real price. So I have to now look up what is the sales tax before I can make an informed decision.

You may be fine with it if you live there and have learned to instinctively add 9% - but to a foreign traveler, one doesn't even know what percent they should add! _Of course_ it's annoying.

P.S. I am not German.

edited to add: It's just like the insane tipping culture in US. If you don't tip, somehow _you_ are the monster. It's not a problem that restaurants don't pay a living wage, it's not a problem that they don't even have to pay the minimum legal wage (!!!) - no, the problem is not with America. It's with the monsters that don't tip, because how else are those poor servers going to survive? Basically, when you look at the price in a US menu, you have to remember that the real price is at least 130% of that. And somehow, americans seem to be fine with it, and consider that it's the foreigners that are the oddballs here.

Do note, I don't have a problem with tipping, and I do tip even in my country, quite generously so sometimes (e.g. 50% at barbershops because I feel their prices are just too low, and also the person providing the service is actually doing most of the work too). But I don't like being forced to do it. It's one thing to tip as a sign of "thank you, good job!"; and it's a completely different feeling to tip as "here, this will give you something to eat this month"

Euros are always complaining about tipping and acting like servers don't prefer it because they make way more money...
It's a real-life dark pattern. The benefits of showing the price with taxes for consumers vastly outweigh the minor problems for stores, other than makes them look cheaper.
I'd call it "fraud". The store is basically hiding the real price from me.

Are there "service charges" too? :)

> if I asked most Germans their least favorite thing about the US this is would be the MOST common response

Either this or the Imperial units.

Maybe due to the German fondness for cash?

A few percent higher prices aren't as much of a deal when paying with credit card, the transaction works exactly the same, but when paying cash, it might look very different (up to "don't actually have enough with me. oops.")

This stands to reason, credit card use in the UK is very high. So high in fact I recall several times before I had a chip card having trouble paying at cashless kiosks.
> I hate to stereotype but I've found Germans in my experience to take particular offense to this practice.

That's kinda funny to hear, as these hilarious comedy clips have been some of the most popular on YouTube the last months:

German Learns about U.S. Sales Tax - https://www.youtube.com/watch?v=9CYokP6YIKw

German learns about Tipping in the U.S. - https://www.youtube.com/watch?v=rEQhA-JJlH0

Both are worth a watch, just 1 min each.