VAT (Value Added Tax)

[Livewire121]

I would like someone to shed some light on the VAT tax. I was placing an order at Modellbaupirat tonight, but when I proceeded to checkout the 19% VAT tax was still applied to my order total. Being that I live in Canada I was under the impression I was exempt from paying this tax, since I am importing these items into a
non-member country. So I did a little searching on the net and this is what I found.

For the purpose of exports between the Community and non-member countries, no VAT is charged on the transaction and the VAT already paid on the inputs of the good for export is deducted - this is an exemption with the right to deduct the input VAT, sometimes called 'zero-rating'. There is thus no residual VAT contained in the export price.

So please correct me if I'm wrong and trust me I've been wrong in the past! But from what I read there should be no VAT applied to my order??

Regards,

Richard

[gsbuickman]

Heya Richard, personally I think it's nonsense, but I can see both sides of the argument about it. As far as your situation goes, I think there are alot of bugs in the system. I would recommend contacting the company directly about it. Any company worth its salt will help you out. Cheers.......

[Livewire121]

Thanks for the reply. Before I started this thread, I sent Modellbaupirat an email. I quoted the same paragraph from above, so we'll see what they say about it? I order from the States, England, and China to name a few. I pay my currency conversion, shipping fees, custom fees, and PayPal fees when its required, now I have to pay the VAT....WOW!

[Livewire121]

$1.40 CDN = $1.00 EURO
VAT + 19%
Shipping $35-40
PayPal + 4.9%
Customs ? 13%
= man I really need these parts!

[NativePaul]

I believe that as you live outside the EU you wont have to pay the VAT, but you will probably have to pay some sort of import tax to your own government instead. That website is probably just assuming you live in the EU and adding it incorrectly, but it is possible that they are not VAT registered and have to pay VAT on what they buy, in which case if they sell something that has less than 19% mark up on they would lose money, so they could be applying a 19% export fee to cover there losses.

[srislash]

As I recall. Joe takes the VAT off before it ships out or when it is processed. MTC also has an issue with this and initially you are charged it but reimbursed soon after. It'll work out Lipo, Joe is top notch and has great products.
Shawn

And... I usually have my stuff from Germany within a week whereas 2+ from the US
Customs I guess

[Livewire121]

@ Paul
I was actually waiting for your reply, as I had assumed you be able to provide some insight regarding the VAT. Modellbaupirat is a certified online shop, this is a quote from their site;

- Proper Service - (. Including VAT identification number, trade register, etc.) in particular all mandatory information regarding the provider but also industry-specific or job-specific information.

It appears they are VAT registered, so it's my hope that you are correct, about the site believing I live in the EU.

@ Shawn
You've confirmed what Paul said above and it sounds like you know this first hand. Joe's products look great and I'll be doing a fair amount of ordering with him. Seeing the VAT applied to my order caught me off guard...lol.
BTW I've never heard of MTC, would you mind posting a link?

Your replies are very much appreciated.

Richard

[paultbg]

Hello Guys,
I work for an online seller from UK (electronics) and we are dealing with these request daily.
So please let me explain the procedure according to UK/EU laws.
You can buy from an (UK/EU) seller without VAT ONLY if:
1. you are a registered European company paying VAT
2. you need to provide your VAT number that can be checked via VIES website
On any other situation you will pay the VAT.
Still, make no confusion. Most of the retailers should have on their websites the prices including VAT.
Basically if you are an aussie buying from a UK retailer you should pay the the retail price (assuming the VAT is already included).
Keep in mind that you will also pay customs fees , handling fees and VAT on your country.
If you are an UK company paying already VAT in your country, you will buy that product cheaper with 20%.
Now back to that particular company, it makes no sense to display the prices without VAT unless you are a big wholesaler selling to other local companies.
Otherwise, if you are a retailer, is just misleading so the people will think that you are cheaper...
Regards
Paul

[Xcesive8]

I purchased some collets from him 2 weeks ago.
Upon purchasing them I also came across the VAT.
But I'm use to it as I always purchase of mhz Germany.

I emailed him and asked how I go about avoiding this as it's added to your total when checking out.
He just said either pay and he will send the Vat back. Or provide email address and he will send me a paypal request.
I also found he has great communication and is great to deal with!

Ryan

[Livewire121]

Well to add to my confusion, I checked the receipts of my most resent purchases from the UK, and there was no VAT applied.
Also I never said the site in question didn't have the VAT displayed in their pricing, because they do. The problem I'm having is being taxed twice on a single item. I quoted this in my first post and it references how the VAT should be applied to exports;

"For the purpose of exports between the Community and non-member countries, no VAT is charged on the transaction and the VAT already paid on the inputs of the good for export is deducted - this is an exemption with the right to deduct the input VAT, sometimes called 'zero-rating'. There is thus no residual VAT contained in the export price."

I confirmed this was the case after checking the receipts mentioned earlier. I find this to be quite taxing....pun intended!

[srislash]

Here is MTC Livewire : https://www.mtc-powerboat.de/index.p...g=de&section=1

Very good stuff,I have used the small stingers on my twin Geico build and one of the rudders is here for my HV Fantasm build upcoming.

[RaceMechaniX]

The best process I have found for ordering parts from Joe @ MBP is to send him an email with the requested parts and quantities. He will then send you an invoice and PP email address to which you can send money. He is a very busy guy so it may take one or two days to return a message.

TG

[Livewire121]

I hope I get the same response from him as having to pay this makes it harder to purchase items from the EU.

Richard

[Livewire121]

@ Shawn
Thanks for the link and I look forward to following your Fantasm build.

@ Tyler
I'll take your advise and send Joe an email with the items and quantities.

Regards,

Richard

[Rocstar]

The best process I have found for ordering parts from Joe @ MBP is to send him an email with the requested parts and quantities. He will then send you an invoice and PP email address to which you can send money. He is a very busy guy so it may take one or two days to return a message.

TG

Agreed. This has worked best for me also.