Quality Sporrans for less money

[Tomo]

I have even LESS understanding of how goods are taxed in the UK for local use or consumption by UK citizens. It appears that the intent is to encourage local industry by NOT charging taxes on goods that are being exported. I'm amazed when I see kilt prices charged to Scottish Citizens much higher than what we in the US have to pay for the same garments.

Basically for domestic sales they charge VAT (Value Added Tax). This is a sales tax which I understand is determined on a state by state basis in the US and is not universal e.g NOMAD. Another potential difference is the point at which the tax is applied. In the UK, VAT is added to the sales price and paid by the purchaser, but VAT registered purchasers can offset the VAT they pay on purchased for their business against the VAT they have charged on their own sales and they only account to HMRC (the tax revenue) for the difference.

VAT in the UK is currently calculated on three rates:

Standard Rate 20% on most goods and services

Reduced Rate 5% on some goods and services, e.g. child car seats and home energy

Zero Rate 0% e.g. most food and children's clothes

VAT is not generally charged on exports - so the price for US customers will typically be 20% less than domestic sales - but may be liable for import duties and tariffs which the buyer pays. Exports to the EU are a little more complex and in some cases may include VAT so some care is needed to avoid being hit twice and paying VAT on importation as well.