Variable Taxation System and Method

A method of operating a variable taxation system having a customer database, a goods database, and a tax rate database, the method comprising the steps of:

• determining one or more tax rates to populate the tax rate database;
• determining one or more goods limits per a predetermined time period to populate the goods database;
• populating a customer database with a plurality of customers;
• affiliating each of the plurality of customers in the customer database with at least a first goods limit in the goods database;
• identifying each customer with a customer identification device having a unique identifier, the identification device comprising one of a credit card, a debit card and a driver license;
• affiliating each customer in the customer database with at least a first tax rate and a second tax rate in the tax rate database, the first tax rate corresponding to the first goods limit;
• determining and maintaining a remaining goods balance in the goods database for each customer and each tax rate,
• wherein each customer is taxed at the first tax rate for goods purchases up to the customer's first goods limit,
• wherein each customer is taxed at the second tax rate for goods purchases beyond the first goods limit.