(a) Yes. (b) No.

(a) No.

It might be annoying but it is actually Value Added Tax. Many countries in the world have value-added taxes. Also, many consumers don’t know that they exist because they are “hidden” in the price that they pay at the till. Let me illustrate with some examples.

In Canada, a consumer might purchase accounting services and pay $10,000 plus 5% GST (which is a VAT) and in United Kingdom, a consumer might purchase accounting services and pay £10,000 including VAT. The United Kingdom consumer has paid more VAT by percentage but is less aware of it since it is included in the price.