The difference is that that 23% is from the total price, which includes tax. Thus, it's 30% of the sales price, meaning that what cost a dollar before Fairtax, costs 1,30 after the tax is added. This 30% is the percentage directly comparable to the European VAT percentages you gave us. So, the 23% gives you how much of the final price is VAT and 30% gives you the amount the VAT increases the selling price.

Because it is only taxed at the final point of sale, the burden on companies is less.

And what point of sale is final? How do you define that?

Example: Bob sells car parts in a car part store to both garages and people who fix their cars themselves. Jim owns a garage and buys parts from Bob. Jim uses the part to fix customers' cars and charges for both parts and the repair work. So, Jim sells car repairs, both to private car owners and Tom the taxi driver, to whom the car, it's repairs and gasoline are purchase he converts to his final product, he sells passages in his vehicle. Now, he sells passage to Mandy the Dominatrix, who is doing a housecall to Bill the owner of a story writing company, who sells fetish stories to a company that produces fetisish magazine, so purchasing Mandy's services are vital for his business. Then, the magazine is sold back to Mandy, who needs it to keep up with the latest trends.

The problem here is that each of these businesses have both sales that can be classified as final sale and sales that are a part of a long chain. What would you consider to be the simplest way of arranging the VAT taxation and how FairTax makes the taxation for the businesses of this chain simple and easy?