Hiku said: It does seem like that is the case. But I'm surprised that this kind of confusing thing is accepted in the US, and pretty much no where else in the world that I know of, except Canada. |
It makes sense the prices go down cause of the psychological factor in pricing. $9.99 is $11.29 here after tax. Chances are it would be priced $10.99 instead.
$1 drink promotions would not become $1.05 promotions.
So it really is beneficial to stores to advertise without tax (and environmental fees and other stuff that comes on top)
I moved from the Netherlands to Canada and got used to it. It was a bonus to go down from 19.5% VAT to 13% HST as well.
And there are a bunch of exceptions to wave the 8% provincial portion http://www.fin.gov.on.ca/en/tax/hst/#pos
At least they don't mind you paying with a credit card here for everything, even if it's just a couple dollars. In Holland stores charged extra for using a debit card under a certain amount. (The bank charges you extra here for using a debit card... always use a credit card)