Originally Posted by
Alan Klein
In the US, even if you take possession, you don't pay sales tax if the product is resold.
The distributor just furnishes a "resale certificate" so the sales tax is waived. So for example, if a New York wine store buys wine from let's say a NY winery, the store would provide a resale certificate to the winery so it would not pay the tax. Then when it's sold, the final customer pays the sales tax to the store which then pays NYS the same tax received from the customer.
Alternatively, if the store did pay the sales tax initially to the winery, then they would take a credit for what they paid and send the sales tax to NYS collected from the end-user. The credit they paid to the winery would be offset by the winery's payment to NYS and would be a wash to the government. But the government would get the final sales tax.
Wouldn't it be the same in Britain? Wouldn't they just take a credit for the VAT that isn't being charged to their American customer?
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