Pricing · Receipt Glossary
VAT (Value Added Tax)
The European/UK equivalent of sales tax. Typically baked INTO the price (tax-inclusive) and noted on the receipt rather than added at checkout.
VAT (Value Added Tax) is a consumption tax used throughout Europe, the UK, Canada (as GST/HST), and many other countries. The fundamental difference from US sales tax: VAT is typically tax-inclusive, meaning the shelf price already includes the tax.
On a UK receipt, you’ll see "TOTAL: £12.00 (incl. VAT £2.00)" rather than "Subtotal £10.00 + Tax £2.00 = £12.00". The customer-facing experience is simpler — the price you see is the price you pay.
EU VAT rates vary: standard rate is typically 19-25% (UK 20%, Germany 19%, Denmark 25%), with reduced rates for food, books, medicines. Canadian GST is 5% federal plus Provincial Sales Tax that varies by province.
Receipts in the EU/UK must include the merchant’s VAT registration number for B2B receipts (where the buyer claims back the VAT). On a tourist purchase eligible for VAT refund, an additional VAT receipt is issued for the tax-free shopping process.
See this in action
Brands whose receipts demonstrate vat (value added tax).
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