"UK Tax on US Orders" Topic

Was checking out the price on the "Horns of the Buffalo" set from Warlord Games. At checkout it listed a tax charge of $75. USD Is that correct? VAT is that high? I thought we were exempt.

Thanks

DM

The UK price is £275.00 GBP (including VAT). VAT increased from 17.5% to 20% on 4th January. Therefore the VAT component of the price is £46.00 GBP (about $71 USD ).

Some (but not all) companies will remove the VAT from a sale outside the EU.

VAT is 20% but VAT should be taken off for orders to the USA IF it is charged to begin with as you say.

Can you screen dump the cart and hide your details?

If the seller is Vat registered, you are exempt from paying it.

As they are seperating it out, you should not be charged this amount, query it with them.

If they are charging VAT outside of the EU people like HM Revenue and Customs will want a word with them.

Angel the basket expressly seperates Tax out. It may be that its deducted from the total at order for none EU customers.

Does the VAT vanish when you select US as your location?

Aha, view basket, select USA and your tax is removed Don.

Thank you all.

DM

Freddbloggs

This is a common misconception. It IS perfectly legal to charge VAT on all orders no matter where they are sent to provided you declare all of it to the VAT people.

If you remove VAT then you must have proof of posting for every parcel and for some companies that can be a lot of effort.

Mike

So, as long as the government gets the money they don't care if the money came from a non-EU citizen.

Well, the US is heading that direction.

Mike

Actually, if you sell outside your own country you should not charge VAT, even to other EU nationals. At least that's what my attorney told me when I started the shop.Of course, if you do the Government won't say no to the extra money!

link

Basileus,
I suggest you ask a tax advisor rather than an attorney

"If you sell goods or services to someone who isn't VAT registered in another EU country, you must charge VAT in the normal way – just as you would for a UK customer."

"For dispatches (sales) to a non VAT-registered business or consumer in another EU country, VAT is charged in the country from which the goods are dispatched."

The main occasion I find this annoying is that I've bought books from European suppliers who have not included VAT in the price but charge it at checkout. In the UK, books are zero rated, so paying 'end-user' VAT rates would be better in this case.

Maybe I should. Not that I am selling very much outside Spain, but just in case… The last thing I want is having any troubles with taxes!

The link that Angel Barracks provides merely confirms what Mike (Black Hat) says. It doesn't contradict it.

Mike is correct.

Doug

So any retailer selling to the US can tack on VAT is what it sounds like? That will be a big part of my decision to order from overseas.

I tend to order from figure manufacturuers such as Front Rank, who automatically deduct the VAT in the order program when they ship outside the EU. I think other U.K./EU manufacturers/retailers should follow this up front practice. Other manufacturers such as Hinchliffe/Hinds will deduct the VAT if you ask them to.

Don't forget that not all retailers are VAT registered and therefore cannot remove VAT on overseas orders.

Mike

Some retailers claim to remove VAT from orders outside the EU, but don't. 20% sounds harsh, bet that was not a "selling" point when VAT was first introduced.

Don't forget that not all retailers are VAT registered and therefore cannot remove VAT on overseas orders

Indeed.
I don't charge VAT in the first place so have no VAT to remove.

The classic blunders updated:

Never get involved in a land war in Asia

Never go against a Sicilian when death is on the line

Never mention VAT on exports on TMP

You should add,
Never Order from Black Tree to that list..

Add:

Never talk about IP and copyright law.

I miss the good old days when Revenue Canada would rebate my sales tax to me at the Border. It seems they decided they should tax Americans too.

Maybe they forgot our little family squable with the Brits over taxation without representation back in '76. Whose the MP for New York? I'd like to have a word.

If the UK company is not VAT registered and sell goods to a US citizen then they are not able to remove the VAT component of the goods as technically there is no VAT to remove if they are not VAT registered.

If a UK company IS VAT registered then VAT (which is essentially UK sales tax) should not be added to the order which is then classed as an export. Once the custoemr selects his country from the drop down list on our website the VAT component is not added on at checkout.

If a UK company sells to a non-VAT registered individual in an EU member state then VAT has to be added on.

IF a UK company sells to a VAT registered business in an EU member state then UK law states these sales are technically known as dispatches or removals rather than exports and provided a certain set of conditions is met ( see HMRC website) then the goods can be supplied exempt of VAT but it has to be declared a certain way on VAT returns.

If a UK company IS VAT registered then VAT (which is essentially UK sales tax) should not be added to the order which is then classed as an export.

See Black Hat above:

This is a common misconception. It IS perfectly legal to charge VAT on all orders no matter where they are sent to provided you declare all of it to the VAT people.

And Mike is quite right.

Warlord Games uses ekmpowershop as its ecommerce solution (as do I): this deducts VAT provided that the customer tells the cart in the tax region section that they are outside the EU… which is what the OP hadn't done. :-)

Ironduke, Front Rank add VAT at the end of the ordering process rather than deduct it for non-EU customers. Unlike every other wargames company I deal with, their webstore prices don't include VAT (a fact that took me by surprise when I ordered from them, as I had 20% slapped on the total at the end! :o(

Ironduke, Front Rank add VAT at the end of the ordering process rather than deduct it for non-EU customers. Unlike every other wargames company I deal with, their webstore prices don't include VAT (a fact that took me by surprise when I ordered from them, as I had 20% slapped on the total at the end! :o(

Not true. I just checked, and Front Rank's website prices include VAT (and the website states that they do). What the Front Rank cart does is show the VAT on an order separately along with a VAT-inclusive sub-total and the postage.

Besides, it is a legal requirement for internet prices to include VAT unless on a business-to-business website. From HMRC:

Prices in advertisements, catalogues and price lists
Products advertised in outlets, magazines, on the internet, or shown in catalogues, price lists and other literature may be aimed at the consumer, businesses, or both. If they're only meant for the general public, they'll show you a price including VAT. This is a legal requirement.
If they're aimed at both consumers and businesses, they will usually show a VAT inclusive price, but may also show a price without VAT. The VAT inclusive price must be given equal importance, but read carefully to make absolutely certain you understand what price you'll pay.
Prices aimed only at businesses are usually shown with no VAT included. VAT will be charged on top of the price shown.

Also from HMRC:

VAT on bills and receipts
Most retail prices on bills and receipts include VAT – it is not shown separately. However, some may also show the VAT element as a separate line. This doesn't mean you're being charged extra – it just shows how much tax is included in the price.

I'm beginning to lose track of the number of times that has led to customers believing they have been charged VAT twice. :-)

I'm beginning to lose track of the number of times that has led to customers believing they have been charged VAT twice. :-)

A topic that is coming back to haunt me through threadromancy…