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| | | Author: | MinifigureLand  | | Posted: | Nov 10, 2021 15:57 | | Subject: | Being Charged VAT TAX as a US Seller | | Viewed: | 146 times | | Topic: | Help | |
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| Hello,
Can anyone tell me if it is against BL policy for a Seller to charge VAT Tax
to a US Buyer. I have an order open and the seller is requiring I pay VAT TAX
on top of my Sales Tax already being charges.
Thanks
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| | | | | Author: | peregrinator | | Posted: | Nov 10, 2021 18:10 | | Subject: | Re: Being Charged VAT TAX as a US Seller | | Viewed: | 73 times | | Topic: | Help | |
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| In Help, MinifigureLand writes:
| | Hello,
Can anyone tell me if it is against BL policy for a Seller to charge VAT Tax
to a US Buyer. I have an order open and the seller is requiring I pay VAT TAX
on top of my Sales Tax already being charges.
Thanks
|
It also appears that you are being charged VAT on the Sales Tax amount itself
- that cannot possibly be right.
Anyway, no, a buyer in the United States should not be paying VAT when ordering
from the EU.
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| | | | | | | Author: | MinifigureLand | | Posted: | Nov 10, 2021 19:35 | | Subject: | Re: Being Charged VAT TAX as a US Seller | | Viewed: | 59 times | | Topic: | Help | |
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| In Help, peregrinator writes:
| | In Help, MinifigureLand writes:
| | Hello,
Can anyone tell me if it is against BL policy for a Seller to charge VAT Tax
to a US Buyer. I have an order open and the seller is requiring I pay VAT TAX
on top of my Sales Tax already being charges.
Thanks
|
It also appears that you are being charged VAT on the Sales Tax amount itself
- that cannot possibly be right.
Anyway, no, a buyer in the United States should not be paying VAT when ordering
from the EU.
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yeah i saw the same. Thanks for the reply. How certain are you of this.
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| | | | | | | | | Author: | peregrinator | | Posted: | Nov 10, 2021 19:39 | | Subject: | Re: Being Charged VAT TAX as a US Seller | | Viewed: | 53 times | | Topic: | Help | |
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| In Help, MinifigureLand writes:
| | yeah i saw the same. Thanks for the reply. How certain are you of this.
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As certain as one can be from a Google search ... also I've never paid VAT
on any order I've placed from an EU seller.
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| | | | | | | | | | | Author: | peregrinator | | Posted: | Nov 10, 2021 20:06 | | Subject: | Re: Being Charged VAT TAX as a US Seller | | Viewed: | 60 times | | Topic: | Help | |
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| In Help, peregrinator writes:
| | In Help, MinifigureLand writes:
| | yeah i saw the same. Thanks for the reply. How certain are you of this.
|
As certain as one can be from a Google search ... also I've never paid VAT
on any order I've placed from an EU seller.
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This is an interesting thread:
https://www.bricklink.com/messageThread.asp?ID=255747
And here is the relevant rule from the EU:
https://europa.eu/youreurope/business/taxation/vat/vat-rules-rates/index_en.htm
"For EU-based companies, VAT is chargeable on most sales and purchases of goods
within the EU. In such cases, VAT is charged and due in the EU country where
the goods are consumed by the final consumer. Likewise, VAT is charged on services
at the time they are carried out in each EU country.
"VAT isn't charged on exports of goods to countries outside the EU. In these
cases, VAT is charged and due in the country of import and you don't need
to declare any VAT as an exporter. However, when exporting goods you will need
to provide documentation as proof that the goods were transported outside the
EU. Such proof could be provided by presenting a copy of an invoice, a transportation
document or an import customs record to your tax authorities.
"You will need to provide this proof to be able to fully deduct any receivable
VAT that you have paid in a previous related transaction leading up to the export.
Insufficient documentation may mean you won't have the right to a VAT reimbursement
when exporting goods."
So yes, in the sense that sellers have to abide by applicable laws, it would
seem to be a violation of BrickLink's terms.
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| | | | | | | | | | | | | Author: | Dino | | Posted: | Nov 10, 2021 20:26 | | Subject: | Re: Being Charged VAT TAX as a US Seller | | Viewed: | 59 times | | Topic: | Help | |
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| In Help, peregrinator writes:
Both links are somewhat older and the statements made in them may be outdated.
A lot has changed since 07/01/21.
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| | | | | | | | | | | | | | | Author: | crxefx | | Posted: | Nov 11, 2021 02:31 | | Subject: | (Cancelled) | | Viewed: | 31 times | | Topic: | Help | |
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| | (Cancelled) |
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| | | | | | | | | | | | | | | Author: | SylvainLS | | Posted: | Nov 11, 2021 09:53 | | Subject: | Re: Being Charged VAT TAX as a US Seller | | Viewed: | 45 times | | Topic: | Help | |
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| In Help, Dino1 writes:
| | In Help, peregrinator writes:
Both links are somewhat older and the statements made in them may be outdated.
A lot has changed since 07/01/21.
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Many things changed on July 1st, but how VAT works didn’t.
Why and how much VAT is due didn’t change¹, it’s how/when it’s collected that
changed (i.e. point of sale for importers).
VAT is not due on exports, period.
(¹ Well, apart for the exemption below €22 that was abolished but that was half
the goals of the new laws.)
Now, on the bright side, the PLN 104.18 of VAT are 23% of PLN 452.94, not PLN
498.98 as indicated, and the difference is, oh, magic, PLN 45.88, which is the
Sales tax.
So OP is not charged VAT on the Sales tax, it’s “just” that what’s written is
wrong.
Another, smaller, problem: a 0% VAT is applied on shipping and charges… and though
it’s possible to not charge VAT on shipping (details vary between countries),
I believe the additional charges should be taxed (when VAT is applicable to the
buyer): they are services, therefore they add value, therefore they are taxable.
So something else is fishy here.
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| | | | | | | | | | | | | Author: | MinifigureLand | | Posted: | Nov 11, 2021 03:04 | | Subject: | Re: Being Charged VAT TAX as a US Seller | | Viewed: | 52 times | | Topic: | Help | |
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| In Help, peregrinator writes:
| | In Help, peregrinator writes:
| | In Help, MinifigureLand writes:
| | yeah i saw the same. Thanks for the reply. How certain are you of this.
|
As certain as one can be from a Google search ... also I've never paid VAT
on any order I've placed from an EU seller.
|
This is an interesting thread:
https://www.bricklink.com/messageThread.asp?ID=255747
And here is the relevant rule from the EU:
https://europa.eu/youreurope/business/taxation/vat/vat-rules-rates/index_en.htm
"For EU-based companies, VAT is chargeable on most sales and purchases of goods
within the EU. In such cases, VAT is charged and due in the EU country where
the goods are consumed by the final consumer. Likewise, VAT is charged on services
at the time they are carried out in each EU country.
"VAT isn't charged on exports of goods to countries outside the EU. In these
cases, VAT is charged and due in the country of import and you don't need
to declare any VAT as an exporter. However, when exporting goods you will need
to provide documentation as proof that the goods were transported outside the
EU. Such proof could be provided by presenting a copy of an invoice, a transportation
document or an import customs record to your tax authorities.
"You will need to provide this proof to be able to fully deduct any receivable
VAT that you have paid in a previous related transaction leading up to the export.
Insufficient documentation may mean you won't have the right to a VAT reimbursement
when exporting goods."
So yes, in the sense that sellers have to abide by applicable laws, it would
seem to be a violation of BrickLink's terms.
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Thank you for your time and the reply. Its exactly what my thinking was but wanted
to make sure as the seller (funny enough is from Poland) won't budge and
claims that BL doesnt understand their VAT laws. Which is BS because VAT is a
Entire European tax. Not just set on one country.
I will inform them and just cancel the order most likely.
Thanks again!
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| | | | | | | | | | | | | | | Author: | yorbrick | | Posted: | Nov 11, 2021 03:17 | | Subject: | Re: Being Charged VAT TAX as a US Seller | | Viewed: | 45 times | | Topic: | Help | |
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| | | Thank you for your time and the reply. Its exactly what my thinking was but wanted
to make sure as the seller (funny enough is from Poland) won't budge and
claims that BL doesnt understand their VAT laws. Which is BS because VAT is a
Entire European tax. Not just set on one country.
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No it isn't, it is a local law for the country. It is based on a directive
set by the EU and individual countries have to comply, but it is the countries
that make the laws and also set the rates. That is why there is still huge variations
in rates, from 17 to 27%.
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| | | | | | | | | | | | | | | | | Author: | SylvainLS | | Posted: | Nov 11, 2021 09:55 | | Subject: | Re: Being Charged VAT TAX as a US Seller | | Viewed: | 40 times | | Topic: | Help | |
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| In Help, yorbrick writes:
| | | | Thank you for your time and the reply. Its exactly what my thinking was but wanted
to make sure as the seller (funny enough is from Poland) won't budge and
claims that BL doesnt understand their VAT laws. Which is BS because VAT is a
Entire European tax. Not just set on one country.
|
No it isn't, it is a local law for the country. It is based on a directive
set by the EU and individual countries have to comply, but it is the countries
that make the laws and also set the rates. That is why there is still huge variations
in rates, from 17 to 27%.
|
Yeah, but the principle of VAT is that VAT is paid inside the country (or VAT
zone for the EU) and for imports but not for exports. The purpose is to get
taxes without impairing exportation / your country’s attractivity.
So, yes, details, like rates, may vary, but the core is the same, otherwise the
EU VAT zone couldn’t work.
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| | | | | | | | | | | | | | | Author: | Teup | | Posted: | Nov 11, 2021 04:56 | | Subject: | Re: Being Charged VAT TAX as a US Seller | | Viewed: | 39 times | | Topic: | Help | |
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| In Help, MinifigureLand writes:
| | In Help, peregrinator writes:
| | In Help, peregrinator writes:
| | In Help, MinifigureLand writes:
| | yeah i saw the same. Thanks for the reply. How certain are you of this.
|
As certain as one can be from a Google search ... also I've never paid VAT
on any order I've placed from an EU seller.
|
This is an interesting thread:
https://www.bricklink.com/messageThread.asp?ID=255747
And here is the relevant rule from the EU:
https://europa.eu/youreurope/business/taxation/vat/vat-rules-rates/index_en.htm
"For EU-based companies, VAT is chargeable on most sales and purchases of goods
within the EU. In such cases, VAT is charged and due in the EU country where
the goods are consumed by the final consumer. Likewise, VAT is charged on services
at the time they are carried out in each EU country.
"VAT isn't charged on exports of goods to countries outside the EU. In these
cases, VAT is charged and due in the country of import and you don't need
to declare any VAT as an exporter. However, when exporting goods you will need
to provide documentation as proof that the goods were transported outside the
EU. Such proof could be provided by presenting a copy of an invoice, a transportation
document or an import customs record to your tax authorities.
"You will need to provide this proof to be able to fully deduct any receivable
VAT that you have paid in a previous related transaction leading up to the export.
Insufficient documentation may mean you won't have the right to a VAT reimbursement
when exporting goods."
So yes, in the sense that sellers have to abide by applicable laws, it would
seem to be a violation of BrickLink's terms.
|
Thank you for your time and the reply. Its exactly what my thinking was but wanted
to make sure as the seller (funny enough is from Poland) won't budge and
claims that BL doesnt understand their VAT laws. Which is BS because VAT is a
Entire European tax. Not just set on one country.
I will inform them and just cancel the order most likely.
Thanks again!
|
I think it's not very rare for EU sellers to do this. No VAT is due on exports,
but that means of course that the seller must be able to prove that the goods
did indeed leave the EU. If they are using an "analog" shipping method, like
stamps, you could argue that you won't exactly have proof that it did. Also,
some countries may be more strict with this than others. That's what makes
some sellers decide to just treat all purchases as if they were made domestically
- as if you were a tourist visiting the shop - and charge VAT on everything.
Whether this is right or not, and allowed or not, I'm not sure.
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USA, California
Luxembourg
France, Nouvelle-Aquitaine
United Kingdom, England
Netherlands, Utrecht