What is VAT?

Posted on August 7, 2011 by Cyndee Todgham Cherniak

I have a cute story to share.  At dinner last night, I was speaking with an American couple who had traveled to England in the 1980s. Prior to their trip, they researched bed & breakfasts and found the perfect spot to stay.  The bed & breakfast advertised that their prices were VAT included.  When the couple checked in, they asked the owner of the bed & breakfast "At what time is VAT?"  The owner of the B&B was confused by the question.  "What do you think is VAT?" she replied.  The husband responded "Victorian Afternoon Tea" - he was so excited that he was staying at a place that served Victorian Afternon Tea at no extra cost.  Instead of making an unfriendly remark to the mistaken American couple, the owners responded "Wouldn't that be nice?" and brought them some tea.

I am sharing this story because it may not occur to Canadians that people from other countries may not understand what is "GST" or "HST". What would people think if GST/HST was included?

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