As everyone knows, the North Americans quote everything before state/provincial and federal value added tax is applied. So in other words, if you you see a CD for sale at $9.99, you'll end up paying $10+ for it.
I always found this very annoying, and still do when I'm over there. Just tell me what I'm expected to pay, tax is one of lifes guarantees I'm afraid.
However, I think I'm open to changing my mind on the subject. I am totally f***ed off that we have seen VAT leap from 10% when first introduced in 1974, to double that as of Jan 1st this year. As far as I can recall, I don't think there has ever been a period where this has reduced.
In actual fact, looking at wikipedia, our VAT rate is broadly in line with the rest of Europe, but nevertheless I'm just not convinced Europe has got it right.
My main issue is that it is an easy tax to hide. Sure, we all know it is 20%, but when you buy anything in a shop, it just isn't all that apparent how much we're being clobbered. This is in stark contrast to income tax. You sure as hell realise what you're paying in IT and NI when it's deducted at source.
Personally I am beginning to think it is high time shops considered quoting prices ex-VAT. At the very least, I think it'll make it less transparent and people can make more of an informed choice of how they prefer to be taxed.
I always found this very annoying, and still do when I'm over there. Just tell me what I'm expected to pay, tax is one of lifes guarantees I'm afraid.
However, I think I'm open to changing my mind on the subject. I am totally f***ed off that we have seen VAT leap from 10% when first introduced in 1974, to double that as of Jan 1st this year. As far as I can recall, I don't think there has ever been a period where this has reduced.
In actual fact, looking at wikipedia, our VAT rate is broadly in line with the rest of Europe, but nevertheless I'm just not convinced Europe has got it right.
My main issue is that it is an easy tax to hide. Sure, we all know it is 20%, but when you buy anything in a shop, it just isn't all that apparent how much we're being clobbered. This is in stark contrast to income tax. You sure as hell realise what you're paying in IT and NI when it's deducted at source.
Personally I am beginning to think it is high time shops considered quoting prices ex-VAT. At the very least, I think it'll make it less transparent and people can make more of an informed choice of how they prefer to be taxed.