Friday 9 July 2010

Why does something marked at $10 not cost you $10?

Because in America, each US state, charges its own sales tax, but unlike VAT in England it is not included in the price on the ticket but gets added at the till when you shop. Not everything has sales tax added (such as foodstuffs) but toys, clothes, postcards and books do.

Maryland sales tax is 6% so something marked at $10.00 will cost you $10.60 at the till and a $50 item will cost you $53.00

In New York you have to pay both a city and state tax which adds up to 8.875%. This makes a $10 item nearly $11

Unfortunately, unlike VAT which can be refunded to tourists when they leave the UK if they have receipts, it is not possible to get a refund of any US sales taxes.

The tax-free limit on bringing things back into the UK which have been bought overseas is £390. Above that level, you must declare them and are liable to pay tax on them on arrival at customs.

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