Wednesday, August 7, 2019

VAT Short Discussion

Around two decades ago, I sat and tried to really understand the German VAT (the value-added-tax, or sales tax).  The more that the German I conversed with.....explained....the more difficult the VAT seemed.

Basically, all simple food items (fruit, vegetables, meat, etc) is supposed to be 7-percent VAT.  The 'fine' items or stuff that you really didn't need.....were set at 19-percent VAT.

Regular water and milk products?  Seven-percent.  Just about everything else, including orange juice, was 19-percent.

Soy milk?  19-percent.

Are items readily identified in the grocery stores along the 7 or 19 percent level?  No. 

Should you even engage on this topic and try to understand the 'game'?  I would suggest that you just dismiss it and let it lay there.  Yes, it will appear on your grocery receipt, but you might be shocked how you picked up some item, thinking it was 7-percent.....when it wasn't. 

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