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The problem is that there are a lot of situations in which tax is exempt and/or variable depending on the customer. i.e. Joe Sixpack is going to pay 7% on his

The problem is that there are a lot of situations in which tax is exempt and/or variable depending on the customer. i.e. Joe Sixpack is going to pay 7% on his loaf of bread, but Jane Wicstamps buying the same loaf of bread with food stamps does not get charged any tax. Additionally, some municipalities will do things like say there's a general 7% sales tax on everything, except groceries, which are taxed at 2%...until next year, when the general tax goes up to 8% and the tag on literally every item in the store needs to have the price adjusted.

jon-wood 8y ago
We cope just fine with variable tax rates and rules for who pays tax in the UK. The general rule is that all prices are inclusive of VAT (sales tax), if you’re VAT exempt as is the case for many businesses then you claim that money back. Some businesses allow you to provide proof of VAT exemption and sell at the price before tax to avoid having to claim back. For things that don’t have different VAT rates, such as food or children’s clothing, it’s the retailers responsibility to price that in - most people probably couldn’t even tell you which particular goods are VAT exempt.