[alexanderchr]

Exactly, and in the US no sales tax is prepaid? So there is nothing to return upon export.

You seem to be saying that having a tax that is refunded gives a different result than not having the tax at all, which sounds like nonsense to me.

[firesteelrain]

Bottom line is US businesses cannot discount or deduct state and local sales taxes on purchases made from their suppliers in the same way that VAT operates. Correct that sales tax is not paid on export.

[alexanderchr]

But US companies can get sales tax exemptions, no? And these exemptions serve the same purpose as VAT refunds.

[firesteelrain]

No

[alexanderchr]

Yes, for example https://comptroller.texas.gov/taxes/publications/94-124.php