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View Full Version : VAT and Pricing on pens shipped outside EU



dmendel
February 10th, 2016, 03:19 PM
I am wondering what kind of experience those outside the EU have had with vendors pricing pens that are sold online and shipped outside the EU. I ask because I have just corresponded with a vendor in Germany who is having a sale. His website indicates very clearly that the list prices are inclusive of VAT -- it shows the list price and then indicates below it the amount of VAT that is included in that price. When I asked if VAT was automatically removed for orders shipping outside the EU he said that it was -- VAT will be listed as 0% -- however the sale price will remain unchanged. This makes no sense to me: If the listed price includes the 16% VAT markup, and I am being charged 0% VAT, then the sale price to me should be 16% less. Given that I will likely be paying 13% tax on my end when I receive the shipment, this ends up almost entirely negating the sale price being offered. Obviously, I won't be purchasing from this vendor. But I am just wondering if anyone has run across this before. I have only ever ordered retail purchases from the UK (shipped to Canada) and in those cases VAT was charged at 0% and the final sale price was reduced accordingly.

Cookies
February 11th, 2016, 12:33 AM
My experience has been automatic VAT removal as soon as you enter your international address. Any discounts stand. Seems very odd that the discount wouldn't count after VAT removal.

Chrissy
February 11th, 2016, 02:08 AM
There was a recent topic on this subject Here (http://fpgeeks.com/forum/showthread.php/10976-Question-about-VAT-for-US-residents), and that also contains a link to a similar topic that involved Conid.

It was all sorted out in the end. However, EU sellers do not have to collect or pay VAT on goods that they send out of the EU. So if your seller charges you wrongly either he is keeping it himself or he isn't aware of the correct procedure.

dmendel
February 11th, 2016, 07:16 PM
There was a recent topic on this subject Here (http://fpgeeks.com/forum/showthread.php/10976-Question-about-VAT-for-US-residents), and that also contains a link to a similar topic that involved Conid.

It was all sorted out in the end. However, EU sellers do not have to collect or pay VAT on goods that they send out of the EU. So if your seller charges you wrongly either he is keeping it himself or he isn't aware of the correct procedure.

Thank you for pointing me there and the link about CONID. (I did do a search before I posted, but it told me "VAT" was too short or too common and returned no results.) What a great read! My case is slightly different from the CONID fiasco. My vendor seemingly knows and acknowledges that VAT should not be charged, but he refuses to lower the price accordingly. Seems a bit wobbly to me. If he were to include an additional "service charge" for non-EU orders that just happened coincidentally to be equal to the VAT rate, then I think it would be legal, but not really ethical, and a clear deal breaker. My message to him asking him why he is not adjusting the price since he does not have to pay the VAT, has gone... surprise, surprise... unanswered.

krischuck
February 23rd, 2016, 03:10 AM
That's unfortunate. :( anyway did it get all sorted out at the end?