Viewing 16 posts - 1 through 16 (of 16 total)
  • Charging VAT on exports
  • Xylene
    Free Member

    I wanted to purchase a cover for my tablet and have it shipped out to me overseas. The -VAT price plus shipping made it good value.

    On placing items in my cart, the VAT wasn’t removed when I selected a country outside of THailand. I emailed and asked why and got this reply

    Thanks for your email.

    All of the items sold on xxxxx are subject to UK VAT.
    If you’re purchasing from a country outside of the UK then the VAT forms part of the price of the item so the cost which is displayed on the website is the total value of the order.

    Is that allowed?

    mikewsmith
    Free Member

    I don’t pay VAT on anything that I buy from the UK (in Oz) I’d suspect the retailer is small and has no idea how to manage that part of it.

    Xylene
    Free Member

    ^ About what I thought.

    Bit miffed as the tablet covers aren’t cheap and his pre-VAT price made it really good value.

    mikewsmith
    Free Member

    just cancel and find another one of the 1000 cover shops, are you shopping from Thailand? Most seems to come from that neck of the woods.

    Xylene
    Free Member

    This was a Noreve case – I fancied being a posh git, unfortunately my dreams are dashed.

    nickdavies
    Full Member

    Yeah it’s allowed as far as I know – legit really as on that kind of value if they’re not doing it often it can be costly to do, the tenner of vat doesn’t affect them but the cost of dealing with it might just not make it worthwhile. I’ve before done vat retail export stuff with a 20% discount just cos it’s easier than doing the vat paperwork to claim back. Mikes probably right though they probably dont know about it and haven’t set the site up for exports properly!

    You tried noreve direct? Just had a mooch myself dos they’re quite nice – noreve have a 15% flash sale on, should do net of vat and with the euro rate being what it is might do you better off?

    andyl
    Free Member

    Thanks for your email.
    All of the items sold on xxxxx are subject to UK VAT.
    If you’re purchasing from a country outside of the UK then the VAT forms part of the price of the item so the cost which is displayed on the website is the total value of the order.

    this doesnt seem to make any sense.

    Are you buying it from a UK seller or a Thailand seller?

    If UK then exports out of the EU don’t carry any VAT. The seller won’t be expected to pay HMRC any VAT. You would be charged VAT as part of any import costs at the destination.

    Xylene
    Free Member

    ^ UK seller into Thailand with the hopes I don’t get bummed by customs

    I was going for Noreve direct until I found their Pro 3 cover for sale at 55 quid, which with the VAT off and shipping made it about 20 quid cheaper for the bog standard cover.

    Now if I can’t get it cheaper, I will either go full custom from them, or just get a Maroo, which is about the same price, but just not as niche.

    Xylene
    Free Member

    Just discovered Outback by Sanfransico bags, hard choice.

    https://www.sfbags.com/collections/sleeves-cases-for-surface-pro-3

    jambalaya
    Free Member

    OP, it can be done but it’s a hassle for the seller, they are not obliged to offer the product VAT free. I would imagine import duty and local VAT would be due in Thailand.

    konabunny
    Free Member

    I’ve before done vat retail export stuff with a 20% discount just cos it’s easier than doing the vat paperwork to claim back.

    Claim it back? Surely you just don’t collect it?

    jfletch
    Free Member

    Claim it back? Surely you just don’t collect it?

    Yes – But you also have to prove to HMRC that you actually exported the goods. That is not a trivial thing to do. It’s probably not worth the seller’s while even learning that this is a thing, let alone going to the hassle of sorting it out. Easier just to overpay VAT by £10 and lose out on the odd overseas sale.

    Big companies like Wiggle can automate this process to some extent.

    This is a great example of why it would be cretinous to leave the EU. Currently we can sell to consumers in Germany, France etc without any of this issue.

    pdw
    Free Member

    This is a great example of why it would be cretinous to leave the EU. Currently we can sell to consumers in Germany, France etc without any of this issue.

    On the other hand, look at the ineptly implemented EU VAT rules for electronic services, which have already put some small companies out of business, and actually makes it harder to sell certain services to consumers in other member states than those outside the EU.

    http://blog.mythic-beasts.com/2014/12/12/tax-doesnt-have-to-be-taxing-part-1-aka-the-vatmess/

    Also, you don’t have to be a member of the EU to have a free trade agreement. Look at Switzerland.

    nickdavies
    Full Member

    Claim it back? Surely you just don’t collect it?

    No – retail export’s a bit different. You fill some forms in face to face customs stamp them on exit you get forms back, fill more forms in, process a refund which you get charged for and fill some more forms in. It was more an example of how it can be a ballache.

    If we just ship distance like the op’s discussing it’s more straightforward as the computer system takes care of it but it’s still a bit of a faff, especially if you didn’t have automated systems in place.

    This is a great example of why it would be cretinous to leave the EU. Currently we can sell to consumers in Germany, France etc without any of this issue.

    How would that have a bearing? If you sell to a consumer in the EU you charge VAT as normal. If we left the EU you’d either charge vat as normal and not worry about it or zero rate it like for the rest of the world now, so it wouldn’t make a practical difference. If we left the EU we’d also get out of some of these stupid new EU distance selling regulations…

    jfletch
    Free Member

    Also, you don’t have to be a member of the EU to have a free trade agreement. Look at Switzerland

    You don’t have to pay VAT on exports to Switzeralnd. You do have to make an export declaration when exporting to Switzerland.

    How would that have a bearing? If you sell to a consumer in the EU you charge VAT as normal. If we left the EU you’d either charge vat as normal and not worry about it or zero rate it like for the rest of the world now.

    Because zero rating is hard. Being in the EU opens up the EU as a market without either having to pay unnecessary tax (and therefore having uncompetivitive prices); or having a large admin burden for the seller (zero rating) and the buyer (local VAT on imports)

    The UK is a leader in e-commerce and being in the EU is essential for this.

    Xylene
    Free Member

    ^ it would and it therefore makes it not as attractive depending on which customs person picks it up.

    I’ve had bike parts from Taiwan duty free, but a crappy kipling bag, cost me 30 quid tax

Viewing 16 posts - 1 through 16 (of 16 total)

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