VAT (Value Added Tax) in the UK. Probably called sales tax in the US

[Captain Caveman]

When you buy goods and services in the UK, VAT is automatically added to the price. There are 3 rates of VAT -

20% Most goods and services

5% Some goods and services, for example, children’s car seats and home energy

0% Zero-rated goods and services, for example, most food and children’s clothes

So a £10 saucepan would be subject to 20% VAT, so it will be priced up on the shelf at £12. That's the price you pay at the till. The £12 figure is called the Gross amount and the £10 figure is the Nett amount.

If your turnover is £90,000 or more, you must register for VAT. That means you must add the appropriate rates of VAT toy you goods and services, and send this to the Taxman, less the VAT your business suffered on goods and services it paid for on running the business. There are various registration schemes.

So many videos on YouTube where Americans discuss UK's sales tax compared to the US on how we pay the ticket price at the till, and extra percentage is not added on. So just posting this for those who don't know.

Edit - and the 5% rate on energy was an EU idea to pay towards global warming. We've left that dictatorship, but the 5% is still there !!

 

[Dont Taz Me Bro]

We don't have a VAT in the USA, but there are sales taxes at the state and local levels in some places. We have no federal sales tax.

 

[Tommy Tainant]

We don't have a VAT in the USA, but there are sales taxes at the state and local levels in some places. We have no federal sales tax.

I bought a shirt in a Florida department store once and the receipt was a mile long. All sorts of taxes. It was a nice shirt tho.

 

[Dont Taz Me Bro]

I bought a shirt in a Florida department store once and the receipt was a mile long. All sorts of taxes. It was a nice shirt tho.

It varies from state to state. Florida has no income tax, so I imagine they have higher sales taxes. We have no income tax here in Nevada, but we have a higher state sales tax and then Clark County, where I live, adds on with their own sales taxes.

 

[Dante]

I bought a shirt in a Florida department store once and the receipt was a mile long. All sorts of taxes. It was a nice shirt tho.

In LA area, there are unincorporated areas, cities within city boundaries.

When I helped somebody make up some receipts I made them aware that a when a store...

I can spot many faked receipts because of errors in a sales tax.