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The problem with all prices being shown inclusive of tax is that the amount of the tax becomes forgotten over time. By having tax added and called out on the r
by djrogers 8y ago
The problem with all prices being shown inclusive of tax is that the amount of the tax becomes forgotten over time. By having tax added and called out on the receipt at the register, everyone is reminded many times per day how much sales tax they're paying.
- macintux 8y agoAdditionally, sales tax is sometimes not required, either because the product or the reason for purchase is exempt. Computers can deal with the latter, signage can't.
- xyzzyz 8y agoSignage in Europe deals with this just fine.
- notahacker 8y agoFor bricks and mortar stores, if the majority of people due to pay the tax are capable of rounding up a posted price of $fee + tax, the minority eligible for tax exemptions are capable of rounding down a posted price of $fee - tax Might be a little different for online stores where tax can't be calculated until they know which of the many different local tax codes the sale is being made under, but as you've already noted computers can handle updating the price before people confirm the purchase.
- Symbiote 8y agoEuropean online retailers that expect significant sales to both businesses and consumers (e.g. computer components) either show both prices with different fonts, or have a button somewhere to switch between with- and without-VAT prices. Except for businesses, there isn't the situation as in the US, where the retailer is responsible for verifying that a customer is tax-exempt. People on the equivalents of food stamps pay the VAT; yes the money just goes in a circle back to the government, but it's probably easier accounting for everyone.
- oldcynic 8y agoSignage in store shows the price you pay at the till. The till receipt or invoice breaks down the VAT element for you, and most places even pick out what is zero rated or exempt should you care.
- steve19 8y agoElectronic signage is cheap and can deal not only with changes in tax, but also the much more frequent sales. https://en.m.wikipedia.org/wiki/Electronic_shelf_label https://en.m.wikipedia.org/wiki/Electronic_shelf_label
- brewdad 8y agoNothing is stopping you from having the computer back-calculate the tax and display it on the receipt. I seem to recall the ones I got on my last European trip showed the VAT as a separate line item despite the price tag including the VAT. I mean, isn't that the whole point of having an electronic POS.
- oldcynic 8y agoNo, it really doesn't get forgotten. Every receipt breaks out the VAT and rate. Food, books and children's clothes (and a few other things) are exempt (UK). All online purchases show VAT in the checkout and basket, and in the invoice after purchase.