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The United States do not use the VAT tax system. VAT stands for Value Added Tax and is common throughout most of the world. Each of the 50 states and territories in the United States has the ability to decide if it want's to charge sales tax on retail purchases and what rate to set. Additionally, many of the states allow each county, city, and special district to enact it's own sales tax, making the sales tax rates highly variable across the country.

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