VAT Outside of the EU?

[ChampagneGary]

I was looking at some items for sale from an English online site. There was a site-wide discount for new customers. I assumed also that there would be an Ex-VAT price for items shipped outside the EU as I've seen some sites where they list both the VAT & Ex-VAT prices. However, I couldn't find a way for the site to show Ex-VAT prices. So, I sent them an email asking about this. This is the relevant part of the reply I received.

For all orders sent outside of the EU the price seen on site is the unit price and is not inclusive of a VAT charge.

The price of the items did not change during checkout when I entered my US address. So my assumption is that this company does not deduct VAT as they imply in their email or else, their website automatically detects my location in the US. I assume it is the former since their "Ex-VAT" price to me (before new customer discount) appears to be the MSRP.

Since I didn't seem to get the VAT deduction, I didn't complete the checkout. Any thoughts?

 

[GloryUprising]

There may not be a VA 'deduction' per say. Did the price itself changed in the itemized bill?

This company may not do VAT deductions, so if the price itself didn't change and that affects your choices then I would steer away.

What's the website?

 

[galopede]

If you can give me the site and one specific item, I can check what the price is for me as I live in the UK. That way we can find out if they are taking off the 20% VAT we pay on things here.

Gareth

 

[SocalRick]

From their response, I'd deduce that they probably list the prices without VAT, then add the VAT to EU orders.

Compare their prices to other English sites and see how they stack up.

 

[coffeejn]

From their response, I'd deduce that they probably list the prices without VAT, then add the VAT to EU orders.

Compare their prices to other English sites and see how they stack up.

I know in UK they have the VAT included in the price, so that would be weird to have it any other way.

 

[SocalRick]

I know in UK they have the VAT included in the price, so that would be weird to have it any other way.

But the response the OP received from the site said that the price did not include the VAT, so it's obviously done that way on occasion.

 

[ChampagneGary]

The site is Mankind ( mankind.co.uk ). The price of T&H No.10 shaving cream (8.00 pounds or $11.92) doesn't seem to change from before and after I enter my US address. In addition to what was written in the email I received, here is what they say in their website FAQ:

All orders placed, which are being delivered within the UK and are inclusive of VAT. Orders with a delivery address outside the UK may be subject to import duties and taxes (including VAT) which are levied once a delivery reaches your destination country. Any such additional charges must be borne by you. You should note that customs policies and practices vary widely from country to country. We recommend that you contact your local customs office for information.

If indeed the US price is the same as the UK price, it seems that they continue to charge VAT on shipments outside of the EU.

 

[Anthorn]

I think mostly but not always in the U.K. the price shown includes V.A.T. but the actual price and the V.A.T. is separated both on the checkout page and the email acknowledgement/receipt or only in the email acknowledgement/receipt. But really, you can't be sure you're not paying V.A.T. unless you buy from a website which specifically offers tax-free shopping for foreigners such as https://www.theenglishshavingcompany.com/

But once paid you can't get a refund if bought by mail order even if bought while you are in the U.K. Here's relevant info for people visiting the U.K: https://www.gov.uk/tax-on-shopping/taxfree-shopping

 

[Eeyore]

But the response the OP received from the site said that the price did not include the VAT, so it's obviously done that way on occasion.

I think that is not legal for sites aimed primarily at consumers.

Some webshops get around that by presenting themselves as a B2B shop that also sells to consumers.

 

[galopede]

As I said, I am in the UK and the T&H No 10 shaving cream comes up as £8.00 on Mankind so unless they take the VAT off at the checkout, they are keeping the £1.33 tax for themselves. Naughty.

I bought another tub of that cream (very nice cream actually) in Sainsbury's supermarket a few months ago. Can't remember how much it was. Must look next time I'm in there.

Gareth

 

[Phog Allen]

Gareth, dang it old boy. They are now hitting you lot for 20% VAT? Wasn't it 17% not too long ago? I would love to buy from some UK vendors as many times their prices are much better minus VAT but as always the carriage is nearly as much as the purchase. This goes each way across the pond from what I gather.

 

[Nickypoo]

You may need to "register" an account with the vendor for the VAT excluded price to show. There are quite a few sites where you are required to do this to get the net price.

 

[ChampagneGary]

An update. After reading all your helpful information, I sent a second inquiry to mankind asking them to clarify their VAT situation. The rather long email quoted their earlier email to me that [FONT=&quot]said
“For all orders sent outside of the EU the price seen on site is the unit price and is not inclusive of a VAT charge”[/FONT] and the following line from their online FAQ: "All orders placed, which are being delivered within the UK and are inclusive of VAT."
I also pointed out that a UK based forum member verified that the price of an item was the same from within the UK as it showed on my computer in CA. I told them that my understanding was that " if VAT is inclusive for your UK shipments, and if the prices are exactly the same, then it is inclusive for your shipments out of the EU, contrary to your email. If you do not charge VAT on non-EU shipments, the price should be Ex-VAT and less than the VAT-inclusive price..
Am I not understanding this correctly?"
The answer I received today from Mankind was "For all orders sent outside of the EU the price seen on site is the unit price and is not inclusive of a VAT charge.
The price shown on site, is the price you need to pay and we are unable to offer a VAT reduction."
So, I guess, as someone suggested, they are pocketing the VAT and increasing their profit on non EU transactions.

 

[galopede]

That is very naughty of them! They may be breaking the law there.

Gareth

 

[galopede]

Gareth, dang it old boy. They are now hitting you lot for 20% VAT? Wasn't it 17% not too long ago? I would love to buy from some UK vendors as many times their prices are much better minus VAT but as always the carriage is nearly as much as the purchase. This goes each way across the pond from what I gather.

It was 17.5% for some years but went up to 20% a few years ago Todd. We are still have one of the cheapest VAT rates in Europe though. Not the cheapest! Hungary's rate is 27%!