So where would a fair tax or VAT show up with respect to a church, specifically what items?Anything they bought that wasn't for resale; to produce, provide, render, or sell taxable property or services; or in furtherance of other bona fide business purposes. So just about everything they buy would be taxable (e.g., hymn books, Bibles, buildings, utilities, stained-glass windows, etc.).
Most of the items you speak of for buying are with a closed network and many are donated.
In all my experience I have seen churches constructed on the donation of time and materials by its members.
Most Church organizations have their own printing presses.
Building materials are often donated or financed by members.
Church bazaars or cake sales are almost always done by suggested donations. So there is no VAT or sales tax added. Even state sales taxes are not collected at Church dinners.
Most Churches really don't operate as businesses. They operate as goodwill structures.
I can't think of anything else that is really an expense that is not donated or handled by a pledge committee. Even utilities are often picked up by members.
No disrespect intended but I think your argument is weak.
The real issue is what is a Church?
That the government sought to impose the threat of taxation on Churches is disturbing but sometimes understandable in some cases. Scientology presents itself as a church. It is viewed by many as a tax evasion scam.
But such abuses could be minimized by eliminating the income tax. For then donations to organizations such as Scientology would have no tax benefit.
Don't get me wrong, I don't think I will see an elimination of the income tax in my lifetime because I think it will take a revolution which is still 25 years in the future. The revolution will be caused by demographics and cultural shifts and their impact on government structures as they currently exist. Government will attempt to adapt to avoid extremes in policy changes but the trend is clear and the momentum of the trend I believe is unstoppable.