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The difference between sales tax and a tariff is that the consumer pays the sales tax while the importer pays the tariff. In other words, I'm not presented with
by radlad 2y ago
The difference between sales tax and a tariff is that the consumer pays the sales tax while the importer pays the tariff. In other words, I'm not presented with a "price + taxes + tariff." I'm presented with a "price + taxes" where the price is supposed to bake in the seller's costs (which may include tariffs) and a margin of profit. Likewise, if the price increases to allow for additional tariffs, I will also pay more in taxes.
- andrewaylett 2y agoAnd then you've got VAT, which yes it's the consumer's money that's going to paying it, but the headline price for consumers is the VAT inclusive price and the retailer (or importer, who may sometimes be a consumer) is responsible for paying. Which means that in high-profile cases where the VAT rate is disputed, it's the retailer who is on the hook for the disputed amount. Recent examples being Greggs (a baker, who won their case, so no tax payable) and Uber (where I'm not actually sure whether it's finalised yet? But if they end up needing to pay VAT then it's going to be expensive).