Comment by jbeam
12 days ago
American companies pay VAT in Europe. European companies pay VAT in Europe.
American companies do not pay VAT in in the US. European companies do not pay VAT in the US.
American companies pay sales tax in the US. European companies pay sales tax in the US.
US sales tax is *significantly* lower than VAT, varies by state (allowing for all kinds of loopholes), and applies to fewer categories of products and services sold. No point arguing this, VAT is a protectionist and anti-competitive tax and the US has a right to challenge it.
Why are you arguing this point? It’s de-facto cheaper and easier for European companies to compete in the American markets, than the other way around.
How is it protectionist if the European companies also pay it?
You are arguing about rules that apply to all companies competing in Europe and then extrapolating that to say that “American companies competing in Europe” are mistreated.
Are you saying the VAT doesn't benefit Europe and European economies (both directly and indirectly)?
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How is it easier for the European companies to compete when the US companies have the same conditions?
Not everyone is an expert in this field. If you are, I'm sure you can provide a more understandable explanation.
It's not obvious to me that the different rates of sales tax/vat matter for competitio either. An example is worth thousand words here...