realcaseyrollins@thelemmy.club to Business@lemmy.worldEnglish · 25 days agoSecondhand Clothes Are Taxed Twice, These Fashion Brands Want to Stop Itwww.teenvogue.comexternal-linkmessage-square10fedilinkarrow-up133arrow-down13
arrow-up130arrow-down1external-linkSecondhand Clothes Are Taxed Twice, These Fashion Brands Want to Stop Itwww.teenvogue.comrealcaseyrollins@thelemmy.club to Business@lemmy.worldEnglish · 25 days agomessage-square10fedilink
minus-squaresnooggumslinkfedilinkEnglisharrow-up25·25 days agoSales tax on resold items is how taxes work. People pay taxes when they buy a used car, refurbished electronics, used furniture, and everything else. This has to be some kind of loophole for selling returns without taxes or something along those lines.
minus-squarelabsin@sh.itjust.workslinkfedilinkEnglisharrow-up2·25 days agoIn Europe it’s not. If an article is sold by a private person to a company, no vat is added and if the company resells it, vat has to be calculated on the profits only and not the full sum. This is especially true for second hand cars.
Sales tax on resold items is how taxes work. People pay taxes when they buy a used car, refurbished electronics, used furniture, and everything else.
This has to be some kind of loophole for selling returns without taxes or something along those lines.
In Europe it’s not. If an article is sold by a private person to a company, no vat is added and if the company resells it, vat has to be calculated on the profits only and not the full sum.
This is especially true for second hand cars.