Wrong. Most jurisdictions have Value-Added Taxes, including I’m pretty sure all places that call their sales tax GST (Goods and Services Tax). In the given scenario, as long as the businesses were making those purchases (as business expenses), they would take the taxes paid as ITCs (Input Tax Credits), and be left will a GST bill of NIL.
Wrong. Most jurisdictions have Value-Added Taxes, including I’m pretty sure all places that call their sales tax GST (Goods and Services Tax). In the given scenario, as long as the businesses were making those purchases (as business expenses), they would take the taxes paid as ITCs (Input Tax Credits), and be left will a GST bill of NIL.
Source: Here’s Canada’s info on ITCs. It’s pretty similar in other jurisdictions.