> What's the point of even having a price sticker if what's charged is more than what it says?
It's because cities can have local sales tax, but advertising campaigns are national, or at last wider than a single city. So it's impossible to advertise the final price unless you micro-target a single area.
Because of this it became the custom not to include tax on any prices.
Unlike Europe there is no sales tax on a national level in the US (except for gasoline), so there is no tax that could be listed that applies to everyone.
(And gasoline, it should be noted, is always advertised with all taxes included.)
> Are some people exempt from the sales tax added?
Yes, certain non profits do not pay sales tax. You can show the sales person a document with your tax free status and it won't be added. (You'll have to sign something attesting you will not use it for personal use, but only for the purposes of the non-profit.)
> Is it dynamic depdending on the total amount charged?
Only for some luxury items, where below a certain amount it's not considered a luxury and the tax is lower.
> It's because cities can have local sales tax, but advertising campaigns are national, or at last wider than a single city. So it's impossible to advertise the final price unless you micro-target a single area.
Yeah I was thinking about actual price tags on products or store shelves. Not billboards or tv ads etc. Doesn't explain why something would be marked $1.00 and charged $1.10 at the register (for example). I see how it could be advertised as $1.00 (+VAT) in a national ad though.
> Yes, certain non profits do not pay sales tax.
If 99% of the customers do pay the tax, wouldn't it help the customers most to mark the products and store shelves with what they will be charged?
With a receipt from the same chain, yes. And on the receipt you always have both the with/without VAT prices listed. So when returning there should be no confusion.
Still doesn't explain what the point would be to display $1.00 on a shelf, if I will be charged $1.10 at the register with VAT.
> It's because cities can have local sales tax, but advertising campaigns are national, or at last wider than a single city. So it's impossible to advertise the final price unless you micro-target a single area.
Yeah, but even bodegas and NYC-only restaurants do this.
It's because cities can have local sales tax, but advertising campaigns are national, or at last wider than a single city. So it's impossible to advertise the final price unless you micro-target a single area.
Because of this it became the custom not to include tax on any prices.
Unlike Europe there is no sales tax on a national level in the US (except for gasoline), so there is no tax that could be listed that applies to everyone.
(And gasoline, it should be noted, is always advertised with all taxes included.)
> Are some people exempt from the sales tax added?
Yes, certain non profits do not pay sales tax. You can show the sales person a document with your tax free status and it won't be added. (You'll have to sign something attesting you will not use it for personal use, but only for the purposes of the non-profit.)
> Is it dynamic depdending on the total amount charged?
Only for some luxury items, where below a certain amount it's not considered a luxury and the tax is lower.