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>- A megacorp that pays 0% in income taxes still pays a ton of sales tax on things it buys Not familiar with the US, is this actually true? In europe, as a com
by strangetortoise 3y ago
>- A megacorp that pays 0% in income taxes still pays a ton of sales tax on things it buys
Not familiar with the US, is this actually true? In europe, as a company, you're allowed to subtract VAT on products bought from VAT owed from sales. That would contradict most of what you're saying.
- seanmcdirmid 3y agoIt depends on the state I think. Sales tax is only implemented per state in the USA. I know Boeing gets an explicit sales tax exemption from Washington state on planes it sells. But things would be really weird otherwise.
- systemvoltage 3y agoI think you're talking about reseller exemption. Boeing or any other manufacturing company. For example, in the chain of iron ore -> steel -> pistons -> engine -> car: In USA, each of the middle steps get what is called a "reseller's exemption certificate" and the sales tax is only charged when you walk out of the dealer. In EU, each of the steps get VAT taxed, but they can remit the taxes from the next step. Overall effect is the same, but USA's system is simpler and easier with less paperwork. American suppliers have to get a certificate only once and then its all set. No sales tax is collected by the buyer for established repeated relationships. One time paperwork.