What is VAT? International Table Saw Purchase.

[Dev Emch]

O.K.
Here is a dumb question for you international experts. If I purchase something like a table saw in england, what are they talking about when they add VAT? Is that something we americans are liable for? I always figured that was the european sales tax and shipments sent abroad were exempt. So whats the story here? Thanks in advance.

[Michael Gabbay]

Dev - I can't give you an answer but I will give you a hard time... :D

Given your taste in big iron, I think the VAT is the least of your worries... shipping comes to mind! :eek:

So what are you buying???

[Don Frambach]

I believe "VAT" is "Value Added Tax".

[Dennis McDonaugh]

Value added tax. Take raw ore, refine it into steel ingots, fabricate it into a saw and put it up for sale. Each step of the manufacturing process "adds value" and is taxed accordingly. Its sorta like a national sales tax. There are some ways around it, but you have to talk to someone who has experience with it.

"Personal end-consumers of products, consumers and services cannot recover VAT on purchases, but businesses are able to recover VAT on the materials and services that they buy to make further supplies or services directly or indirectly sold to end-users. In this way, the total tax levied at each stage in the economic chain of supply is a constant fraction of the value added by a business to its products, and most of the cost of collecting the tax is borne by business, rather than by the state. "

[Scott Loven]

Value Added Tax (every time you add value to an item it gets taxed on its incremental increase in value). If you purchase it IN England you would pay the VAT. If you import it FROM England you should not have to pay VAT.

[Michael Ballent]

Dev,

I have traveled overseas often and you should not have to pay VAT. I think that it usually works out to be about 16% So a $100 dollar item sells for $160. I know that everytime I have gone through Heathrow I just stop the VAT refund site and they pay me back... Each country usually has the amount you have to spend at a store before you get the VAT refund, but I have a feeling that you will hit that with what ever you are trying to buy. :D

It could be that you will have to pay the VAT and then you will have to send in the paperwork to the UK to get the VAT back. Hope that helps and I cannot wait to see pics of what ever you have uncovered :D


O.K.
Here is a dumb question for you international experts. If I purchase something like a table saw in england, what are they talking about when they add VAT? Is that something we americans are liable for? I always figured that was the european sales tax and shipments sent abroad were exempt. So whats the story here? Thanks in advance.

[Dave Fifield]

Scott is correct. VAT was 17.5% last time I looked. You DO NOT have to pay it. If the item is being shipped outside of the EU then it is EXEMPT. Don't let the dealer try to fob you off with any story like "you have to do the paper work" or "you have to pay it up front and then claim it back" etc. I have ordered stuff from the UK on many occasions over the years and have never had to pay VAT.

[Ian Barley]

Value Added Tax is correct. Current rate is 17.5% so a £100 item plus VAT would be £117.50.

Basically, as has been described, each level of commerce charges VAT but registered traders can "reclaim" the VAT that they pay. So if I pay £117.50 out for timber I can reclaim the £17.50 which is VAT. If I then sell the items I make with that timber for £235 I have to pay to the taxman the £35. (Before anybody corrects me - I know its not the taxman but I'm not gonna try and explain the difference in this post)

Dev - If your supplier is sending the goods outside the European Union (EU) - as will be the case if he is invoicing you and shipping to you, he does not have to charge you VAT.

[Dave Falkenstein]

Vat is vut you become ven you eat too much.

[Stu Ablett in Tokyo Japan]

I understand it just as Ian has pointed out, you should not have to pay VAT, but only if your dealer is set up for it.

If they are not registered with the government to ship goods out of the EU, then you may have to pay for it, which would suck.

So, what are you getting?

Cheers!

[Ian Barley]

I understand it just as Ian has pointed out, you should not have to pay VAT, but only if your dealer is set up for it.

If they are not registered with the government to ship goods out of the EU, then you may have to pay for it, which would suck.

So, what are you getting?

Cheers!
Stu

Not quite. If you are "VAT Registered" as a trader then there is nothing special about not charging for exports. If you are not VAT registered then you cannot charge VAT although the price you are charging will reflect the fact that you have paid VAT on what you buy. Its a bit complicated but basically if the price ius quoted as £X plus VAT then the plus VAT bit does not apply to exports outside EU.

[David Fried]

The only thing I buy direct from Europe are yo-yos and I am not charged VAT.

Dave Fried

[Todd Davidson]

Good grief David, America has enough yo-yos without you importing them!!! ;)

[Frank Pellow]

Dev,

I have traveled overseas often and you should not have to pay VAT. I think that it usually works out to be about 16% So a $100 dollar item sells for $160...

Hey Michael, your math is somewhat screwed up. :p You mean $116, not $160.

[Stu Ablett in Tokyo Japan]

Stu

Not quite. If you are "VAT Registered" as a trader then there is nothing special about not charging for exports. If you are not VAT registered then you cannot charge VAT although the price you are charging will reflect the fact that you have paid VAT on what you buy. Its a bit complicated but basically if the price is quoted as £X plus VAT then the plus VAT bit does not apply to exports outside EU.

Thanks for clearing that up, I was relating my experiences with a similar thing in Japan.

Cheers!

[Michael Ballent]

OK OK I'll nothing slips past you does it...:eek: I had just gotten done with a major disaster with my database so I had been up for 26 hours... I almost got all the digits right :o


Hey Michael, your math is somewhat screwed up. :p You mean $116, not $160.

[Frank Pellow]

OK OK I'll nothing slips past you does it...:eek: I had just gotten done with a major disaster with my database so I had been up for 26 hours... I almost got all the digits right :o
After being awake 26 hours, I could easilty have done the same thing. Michael, I hope that your database is now OK and that you have had sufficient "catch up" sleep.

[Michael Ballent]

Yep, its all okay now and the natives are back to work :) But that was a rough night, day etc ;)


After being awake 26 hours, I could easilty have done the same thing. Michael, I hope that your database is now OK and that you have had sufficient "catch up" sleep.