Pay VAT?

[drgonzo]

I often see prices on some European websites with "VAT included" and other sites with "VAT excluded".

My question is, when buying something from the EU (either parts or a bike) and being delivered to the US, does the customer have to pay VAT? Thanks!

[ultraman6970]

From what ive noticed from the sites in the UK ive got stuff from in the past, no... they did not charged the vat.

[dave thompson]

Items purchased from outside the EU are not subject to the VAT

[zmudshark]

Items purchased from outside the EU are not subject to the VAT
This is a fact.

[drgonzo]

This is a fact.

Items purchased from outside the EU are not subject to the VAT

So then how would I calculate the price if I see something listed as €1000 (VAT included)? Is there a fixed % VAT?

[Davist]

you should be able to change your location, which then changes the pricing (ie US/USD shown without VAT). This is what I've seen on Merlin and Chainreaction anyway.

[slowpoke]

Keep in mind US Customs may charge you if your shipment is over $800.

https://www.cbp.gov/newsroom/national-media-release/de-minimis-value-increases-800

[Idris Icabod]

So then how would I calculate the price if I see something listed as €1000 (VAT included)? Is there a fixed % VAT?

VAT in the UK is 20%.

[drgonzo]

Great, thanks for the info!

[peanutgallery]

You buy it in the US, problem solved

So then how would I calculate the price if I see something listed as €1000 (VAT included)? Is there a fixed % VAT?

[Polyglot]

It is not as easy as to simply deduct the VAT as in most countries of Europe it is very complicated for companies or stores to sell outside of the EU and not need to still pay the VAT to the local government. You, for example, need to prove that the goods have actually left the EU without having been used inside the EU. Simply having a shipping receipt is usually NOT sufficient. In some countries you need to be registered to sell outside the EU. You also need to PROVE that the product has not been used before shipping if you are not a habitual exporter.

[Plum Hill]

Best way to find the price is to place the order on the company’s website but stop short of actually paying for it. You’ll get the final price less VAT plus shipping.
VAT varies with the country. And some smaller retailers may not sell without VAT.

[citycyclist247]

Does it apply to sales between two private parties or is it only applicable in purchasing from a retailer?

[Schredder]

This is timely as I’m contemplating buying a frameset from Bowman Cycles. They mention that you don’t have to pay VAT if shipping address is USA but may have to pay us customs fees/taxes.

How do I find out if I have to pay additional customs fees and if so, how much $$? Frameset more than likely is greater than $800 with shipping fees.

Thanks

Chris



Keep in mind US Customs may charge you if your shipment is over $800.

https://www.cbp.gov/newsroom/national-media-release/de-minimis-value-increases-800

[dave thompson]

Does it apply to sales between two private parties or is it only applicable in purchasing from a retailer?

No
Yes

[nobuseri]

I think it depends. I ordered a Power2Max item, and they knew I was from the US, and they have a Canada presence, and I was still charged VAT for power meter activation.

[makoti]

So then how would I calculate the price if I see something listed as €1000 (VAT included)? Is there a fixed % VAT?

It should give you a price excluding VAT when you tell them it's going to the US. I've never had to figure that out for myself

[jimoots]

VAT is UK only. Not EU.

They do not need to charge VAT to international customers. Most businesses will use their e-commerce software to do this, as it increases their competitiveness.

Other retailers may not bother and, in effect, pocket the vat as the government won’t be collecting it from them on an export sale.

Source: knowledge garnered through life backed up by a google search to double check

[PacNW2Ford]

VAT is UK only. Not EU.

They do not need to charge VAT to international customers. Most businesses will use their e-commerce software to do this, as it increases their competitiveness.

Other retailers may not bother and, in effect, pocket the vat as the government won’t be collecting it from them on an export sale.

Source: knowledge garnered through life backed up by a google search to double check

Really? How come if I Google “Belgian VAT” it says the Belgian VAT is 21%?

[dave thompson]

VAT is UK only. Not EU.

They do not need to charge VAT to international customers. Most businesses will use their e-commerce software to do this, as it increases their competitiveness.

Other retailers may not bother and, in effect, pocket the vat as the government won’t be collecting it from them on an export sale.

Source: knowledge garnered through life backed up by a google search to double check

According to Wikipedia, VAT is collected within the EU territory. Different countries are subject to different rates. https://en.wikipedia.org/wiki/European_Union_value_added_tax

[tuscanyswe]

All european countries have vat. Sweden has 25% most eu countries have like 22 or so on average (my own guesstimate).

[Polyglot]

VAT is UK only. Not EU.

They do not need to charge VAT to international customers. Most businesses will use their e-commerce software to do this, as it increases their competitiveness.

Other retailers may not bother and, in effect, pocket the vat as the government won’t be collecting it from them on an export sale.

Source: knowledge garnered through life backed up by a google search to double check

VAT stands for Value Added Tax, so obviously only English language countries would call it VAT. In France the exact same tax is called TVA for Taxe sur la Valeur Ajoutée (which surprise surprise translates to value added tax), In Germany it is MWSt for Mehrwertsteuer (which surprise surprise translates to value added tax). In Italy it is IVA for Imposta Sul Valore Aggiunto (which surprise surprise translates to value added tax), in the Netherlands it is BTW for Belasting Toegevoegde Waarde (which surprise surprise translates to value added tax) etc... Every country in Europe has the same tax and each country has their own laws as to how it is applied and to what it is applied. Other non European countries have GST (Goods and Services Taxes) and other taxes that are similar but not identical. Effectively, the commercial seller of a product has to pay tax on the added value that their processing of the product has created. They get a credit for the value that they paid to purchase the product and then pay tax on the difference between their cost price and their sales price = value added. If a product is sold outside of the European Union it is generally deemed that the value added is not realized until it reaches destination and therefore no value has been added in the country where the seller is located and no tax is therefore due. The laws of some countries in Europe do however require certain types of proof that are cost-prohibitive to obtain for non-habitual exporters, so it simply makes no sense to attempt to export and prove exempt status (this used to be, and I believe still is, the case in Italy, France, Greece, Portugal...). Without the proven exempt status, the seller IS obliged to pay VAT taxes to the federal treasury, so there is generally no way to attempt to pocket the difference. Other more laissez-faire friendly countries make exemption very straightforward and easy (Britain, Netherlands, Germany spring to mind). I know that in the past (in the 70's, 80's and 90's) many European airports had kiosks that allowed tourists to get partial VAT refunds on all goods purchased and not used in the countries. I don't remember seeing any of these kiosks in the last 20 years, so they may have disappeared.

[jlwdm]

You can still apply for the VAT refunds at airports.

Jeff

[jkbrwn]

You can, but you don’t save as much. It’s normally around 11% after the people issuing your refund take their cut. That’s why it’s best to buy stuff in an airport or online where you don’t have to claim it back at the airport.

[jlwdm]

You can, but you don’t save as much. It’s normally around 11% after the people issuing your refund take their cut. That’s why it’s best to buy stuff in an airport or online where you don’t have to claim it back at the airport.

Good in theory, but not so much in practice. Hard to buy things you want at the airport. And shipping cost from most stores.

Jeff