I’ve just tried to order something on Wiggle and when I put my shipping address in (to the Netherlands), the price jumped up. I’m wondering if its due to a difference in VAT? (15% in the UK, 19% here in NL).

I always though VAT was charged at the rate where the merchant operated. I bet the difference in VAT isn’t being forwarded by HMG to the Dutch!

Can anyone shed any light on this. I think its discrimanatory!

Sure its not the cost of P & P?

unless import duty is being paid by wiggle at source.

No, the P+P is free. The list price goes up and the P+P stays at zero.

There is no import duty in the EU…

I’ve ordered before from UK merchants and never seen this price difference.

I suspect its down to VAT. I found this on the revenue and customs site.

From 1 January 2010 most services provided to business customers will be treated as supplied in the country where the business customer is established, and the business customer will account for VAT under the reverse charge mechanism.

Looks like Wiggle is 6 monthes ahead of schedule. Shame the order page doesn’t make this clear though.

Bob – the shipping isn’t free, the cost of it is built in to the price of the article. Change the location, and the cost of the article goes up.

Play.com do exactly the same when you change payment currency from Sterling to Euros.

I got an answer from Wiggle

We do not change the price of the goods to cover the shipping.

Please note that we are required to register to VAT in any EU country where our sales to that country exceeded that countries VAT threshold. Our sales to the Netherlands have exceeded the Dutch VAT threshold so we have had to register for VAT in the Netherlands. Accordingly we have to pay VAT to the Dutch Authorities at a rate of 19% so this is the VAT rate we apply to sales to the Netherlands.
We are only allowed to apply UK VAT rates on sales to other EU countries if our sales to those countries are less than their VAT thresholds