[tdb7893]

As an American I don't really deeply understand VAT but I don't get why an American car would pay more overall VAT than a domestically produced car. My impression is that VAT will be the same for items that cost the same, no matter where they are produced.

[aredox]

I don't get why you believe the liars who told you an American car would pay more overall VAT than a domestically produced car. I mean, you are getting lied to your face, by someone who is a serial liar, so why are you trying to find an explanation for something that doesn't exist?

[Muromec]

The idea behind vat is to spread the sales tax across the chain, which means the government gets the money even if the end product didnt reach the customer.

Naturally the chain breaks at the border, so importers pay vat and exporters get vat refunds.

In the end its just a sales tax

[bardak]

The main purpose of VAT is to not fully apply a consumption tax multiple times through manufacturing and distraction

[surfmike]

Exactly, and for American producers, sales tax does get applied multiple times and can’t be deducted from VAT

[alexanderchr]

Not true, see for example

https://comptroller.texas.gov/taxes/publications/94-124.php

[surfmike]

European producers can deduct VAT on their intermediate business inputs, but American producers can’t deduct the sales taxes on their intermediate inputs.

[stuaxo]

It will be the same, you were right.