EU VAT and shipping to the USA

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Rick
Posts: 340
Joined: Thu Nov 11, 2010 1:12 am
Location: Northern Plains, USA

EU VAT and shipping to the USA

Postby Rick » Wed Sep 14, 2011 5:45 pm

What I've found on the web is a little confusing concerning the EU VAT- it appears that items sent outside of EU countries are exempt from pay the VAT, but, some European suppliers have an 'EU' price and a lower 'outside of the EU' price, others give a price but state something like ' + 20% VAT' , like Menani:
http://www.menani.it/index.php?option=c ... 7&Itemid=1
Others, like Classic Ducati, state:
"N.B. the prices given are the price you pay - there is no addition for VAT!"
My question is, should buyers in the USA, or anywhere outside of the EU, be charges the 20% VAT? If Classic Ducati doesn't add anything for VAT, are they charging buyers in the USA a 'built in' 20% VAT that isn't required?
I'm not trying to damage any foreign economies- just want to know if I should be asking businesses in EU countries to deduct the VAT for orders sent to me in the USA.
Rick

Bevel bob
Posts: 1098
Joined: Thu Apr 15, 2010 8:01 am
Location: Bromley Kent UK.

Re: EU VAT and shipping to the USA

Postby Bevel bob » Wed Sep 14, 2011 6:20 pm

Some sellers may not have enough turnover to need to be registered for VAT, therefore they can't charge it.VAT should not apply to exports outside of Europe.

LaceyDucati
Posts: 579
Joined: Sun Sep 19, 2010 10:30 pm
Location: Wales UK
Contact:

Re: EU VAT and shipping to the USA

Postby LaceyDucati » Sun Sep 18, 2011 6:43 pm

Hello Rick,
UK & EU businesses have to register for VAT when they reach a certain annual turnover. At this point all goods and services must be billed out with VAT added if selling to UK or EU. If a UK/EU supplier sells outside these areas no VAT is charged. Our own website/shop works this out based on your delivery address and will calculate this automatically. You may of course be subject to import duty when the goods arrive regardless of who you buy from.
If you buy from businesses who are not VAT registered, they will generally have bought the goods or materials in the first place including VAT and will unable to claim it back so effectively they will be passing this cost on. It's one of those anomalies, and a good reason to be VAT registered if you are selling outside the EU. In short, you should not be charged VAT on purchases from the UK/EU. Hope this helps, Edina Lacey.

Rick
Posts: 340
Joined: Thu Nov 11, 2010 1:12 am
Location: Northern Plains, USA

Re: EU VAT and shipping to the USA

Postby Rick » Mon Sep 19, 2011 12:52 pm

Thanks BevelBod and Edina.
It must be hard for a company that's required to charge the VAT to compete with a competitor that isn't subject to the tax- a 20% incentive to find a smaller supplier.
Rick

Rick
Posts: 340
Joined: Thu Nov 11, 2010 1:12 am
Location: Northern Plains, USA

Re: EU VAT and shipping to the USA

Postby Rick » Mon Sep 19, 2011 1:02 pm

I read Edina's reply again, and now see that companies that don't charge the VAT pay it tax 'up front', so it isn't as unfair as I thought.
Rick


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