In the Philippines probably less than half the workers pay payroll taxes. Cash jobs abound. Mostly professionals such as police, teachers, government, and corporate. They have a VAT of 12%, but for most things you don't notice it because something that costs 100 say, the tax is already included. So its 100 not 112.

Many people have micro businesses where they sell things and they buy @ retail with the tax and mark up a little. The further from town centre the more the markup. A bottle of rum that sells for 125 at a grocery would be 135 at edge of town and 145-150 in the boonies. Very hard to buy wholesale anything. Some stores cater to these micro businesses, but are only around 1% cheaper than a regular grocer.