True, although a VAT is complex in its effects. Since it's applied throughout the supply chain on added value, not only at the point of sale, it acts partly as

True, although a VAT is complex in its effects. Since it's applied throughout the supply chain on added value, not only at the point of sale, it acts partly as a sales tax, partly as a corporate tax, and in some cases as an excise tax. It may push up final prices to consumers, but it may also push down wages, or push down corporate profits, or have effects anywhere else through the supply chain, depending on each party's pricing power at various stages. How it impacts an individual also depends on how they spend their money. I spend a large proportion of my money on rent, airfare, and foreign trips, none of which incur Danish VAT, so it hits relatively little of my spending.