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At an individual level, it’s not more complicated: it’s reimbursed instead of exempted. And if you’re charging it, it’s easier, since you simply always charge instead of maintaining your list of exceptions.



UK VAT certainly has a complicated list of exceptions, especially "non-luxury food" (see the Jaffa Cake case https://www.astonshaw.co.uk/jaffa-cake-tax/)


But these are per-product, not per-customer. (Businesses, charities, and some customers are exempt from sales tax regardless of what they are buying.)




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