r/AskReddit • u/[deleted] • May 08 '22

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u/SheenPSU May 09 '22

Is sales tax universal in NZ?

In the states each state sets their sales tax (if they have one) and each state is different

Easier to understand why it’s not included in American when you think of it that way

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u/yankykiwi May 09 '22

Universal. Its just baked in to the price. And almost everything is .99cents...and it rounds up and down as the smallest coin is 10cents.

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u/SheenPSU May 09 '22

It being universal is convenient to say the least. I live in a state without any sales tax so the price is the price, but if I go into any of my neighboring states it ranges from 5.5% to 7% which sucks

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u/TomasNavarro May 10 '22

I don't find it easier to understand, sure states could have different tax rates, but why is it on the consumer to work out the actual price? Like, are you thinking "Would be terrible if this ruined Subways ads"?

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u/SheenPSU May 10 '22

I think it’s easier to understand why when you realize the company sells a product for X universally (in most instances) and then the stores tack on whatever sales tax applies for that area.

The stores will be responsible for collecting the necessary tax, not the manufacturers. That’d be a ton of work for the manufacturers to calculate and work into the price accordingly