Payment of MwSt when Buying from EU Countries

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AustHaflinger
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Location: Canberra Australia

Payment of MwSt when Buying from EU Countries

Post by AustHaflinger »

Up to now I have purchased my parts from the UK and all purchases have been UK VAT exempt as I am an international buyer outside of the UK and the EU. Purchase was in £ and not €.

I just made some purchases from mainland Europe in € and was charged 20% MwSt on both the purchase and shipping.

So my simple question is when buying from a EU country that is also financially linked to the Euro Zone does the EU have the same rules that the UK have with respect to no payment of VAT on overseas purchases - that is MwSt should not be payable??

If it is not payable how to you go about getting it back or is it all too hard.

Thanks

Garry
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StuartR
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Re: Payment of MwSt when Buying from EU Countries

Post by StuartR »

My understanding is that if goods are exported the VAT should not be levied, as duty is imposed when received in the destination country.

I have run foul of this when I purchased an engine cover from the US, I ended up being charged import duty and VAT on the cover and the shipping, and £8.00 for having the duty collected by the post office. This came to nearly the same as the unit cost of the cover.

I had a similar issue when buying parts from Canada as well, the VAT, import duty and collection fee came to the nearly the value of the goods.

May be worth querying this with the sender? If it is a business then they should rectify the situation, if not do tell who it is.

Any tax experts out there with advice?
Best Regards

Stuart

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AustHaflinger
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Re: Payment of MwSt when Buying from EU Countries

Post by AustHaflinger »

Thanks Stuart - yes happy with buying stuff from the UK as VAT is definitely not payable. But as you would appreciate the UK wisely maintained a bit of independence from the full EEC system and maintained your own currency etc.

So just interested what applies in the full Euro system. Probably wont chase up this time but will enquire for any other purchases form the "continent".

Thank fully the price comes under the Australian $1000AUD threshold, or else in addition to the EU VAT I would have to pay the 10% Australian VAT plus other import duties making buying goods overseas an expensive exercise.

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Julian B
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Re: Payment of MwSt when Buying from EU Countries

Post by Julian B »

I don't know the answer to the original question, but seriously doubt that the different currency would have a meaningful impact on the way VAT is dealt with across the EU.

Sadly or gladly (depending on your point of view) the UK is as up to its armpits as the rest of the other countries within the EU ...
Julian B
W Sussex, UK

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