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NikaG

confused with prices for local and overseas customers

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Good day,

 

could some one make a few things clear to me according to VAT?

I was going to buy a few things at UK internet-shop, and saw this "If you live within the UK or EU, all our prices are inclusive of VAT at 17.5%. Any invoice e-mails you receive from us will reflect this. If you require our VAT number, this can be supplied on request." So, I thought that each purchase for example for £100 for EU citizen would be at the cost of £85.11 for overseas customer (as VAT should be excluded from the price as we should pay our local custom tax on it). I wrote an e-mail to the shop and here was their answer:

 

We don't add anything here the subtotal isn't £85.11 for overseas cusomers it's £100, there's no subtotal for someone in britain either, they simply pay £100 that includes VAT, for overseas customers the £100 does not include any VAT.

 

How could it be? Maybe I missed something, but it sounds to me like... like you try to get a taxi

 

- Where to?

- To the XXX

- That will cost you 30£... You're british, right?

- No, I'm american...

- £50 and let's go.

 

Isn't it a case when "businesses charging their customers VAT illegitimately"?

 

thank you for your time,

Vladimir

Edited by NikaG

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Moved to General Knowledge Forum


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From what you have written, For UK/EU purchasers, you will be charged £85.11 + Vat. Non uk/EU would be charged £100. If you were VAT registered and the item was for business, you could claim back the £14.89.


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Hi Borisbeaver,

 

I mean that in my previous experience of internet-purchasing VAT was simply excluded from the price - I was charged only £85.11 with no VAT. This is why i'm curious - what is the grounds for increasing the price for non UK/EU till the level of UK price + VAT?

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