-
This prevents so-called giveaway "cascading" or "pyramiding," in which an bit is taxed another than once as it makes its design from production to final retail sale
- There are different types of sales taxes: Seller or Vendor Taxes, Consumer Excise Taxes, Retail Transaction Taxes, or Price Added Taxes.
Some or all of these taxes may be refunded but it generates a lot of paperwork (and income). The VAT paperwork can be burdensome but it remains a hefty source of tax income for most of the European Union, Mexico and other nonaligned nations which charge on humdrum a 15-25% VAT rate. Canadian sales taxes range from 5% in Alberta to an effective 16.6% in Prince Edward Island where sales tax is Use Tax also applied to the federal Goods and Service Tax.