hardware prices in different countries

[GreyianStorm]

DM235 said:

GreyianStorm said:

drakesfortune said:

.jayderyu said:

Have you seen the debt of the US? It makes other countries look like perfect countries.

Also, VAT is just an alternative to Sales Tax. They aren't meant to both be used together. FYI: If sales tax and VAT are equal, people will pay way less in taxes at retail under the VAT system.

Please explain that logic.

A $300 item with 10% VAT would sell for $330 at retail with the consumer not being shown the original item's price.

A $300 item with 10% sales tax would sell for $300 + $30 tax for a total of $330.

$330 = $330.

If the sales tax used is Gross Receipts Tax, tax builds on every level of the sale (manufacturer -> wholesalers -> retailers -> consumers), at 10% (just taking your 10% value). So you end up with the product having ~33.5% tax rate is effect.
VAT only taxes the added value, so the total amount of tax paid = 10% of the final purchase price (well, actually slightly less than 10%, because the final price = non-tax price + 10% tax).