> Caterpillar’s bulldozer is 22.5% more expensive in Germany than in the US. Liebherr's bulldozer is also more expensive in Germany, because Germany taxes both

> Caterpillar’s bulldozer is 22.5% more expensive in Germany than in the US. Liebherr's bulldozer is also more expensive in Germany, because Germany taxes both sales at a higher rate than the US. Nobody gets an advantage from this. American buyer pays 7% tax and German buyer pays 19% when they purchase a bulldozer, regardless of where it came from. I made a small table to illustrate it: +-----------+------------+-----------+----------------+------------+ | Direction | Base Price | VAT (19%) | Sales Tax (7%) | Total | +-----------+------------+-----------+----------------+------------+ | US -> US | 200 000 | - | 14 000 | 214 000 | | G -> US | 200 000 | - | 14 000 | 214 000 | | G -> G | 200 000 | 38 000 | - | 238 000 | | US -> G | 200 000 | 38 000 | - | 238 000 | +-----------+------------+-----------+----------------+------------+ Tax rate differences lead to price variations across markets, but VAT does not create advantages within a single market.