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2 stores needed due to VAT?


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5 replies to this topic

#1 sponna

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  • Real Name:Dave Jones

Posted 23 June 2004, 21:03

Hi,

We are currently quoting for a company which has several offices based around the World and wants to know the VAT implications particularly relating to shipping from the US to Europe. They are wondering if two stores will be necessary.

We have limited experience with this and would appreciate your advice please.

Here is an abstract from the prospective client's mail:

"It may be that we need two near identical shops - one located on our .se website for EU and rest of world (except USA, Canada, Mexico - i.e. NAFTA) sales, and the other only for USA/Canada/Mexico. We have an office in Stockholm and one in Boston - so the physical address of each shop can be registered to these.

The reason for this is VAT.

I read that EC law now forces US shops to obtain VAT number and charge VAT on sales - but I am not sure if this is for downloads only (we have physical product and ship by UPS/FedEx). If this is the case, it may be easier in the longrun to have 2 shops.

I assume you know the rules for a Eu based shop that sell in EU and worldwide. Do you know the rules for selling from US to EU (i.e. do we need 2 shops)?"

Any advice/experience with the above most appreciated.

Thanks
Dave
up the down escalator..........

#2 detsouvalas

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Posted 24 June 2004, 12:03

For accurate information I would advise to visit europe.eu.int
Antonios

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#3 sponna

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Posted 25 June 2004, 20:47

Hi,

Thanks for that - I'll check it out.........

Dave
up the down escalator..........

#4 recentcoin

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  • Real Name:Jimi Thompson

Posted 23 July 2004, 03:13

Considering that the internet is, well, borderless, how do you plan on routing traffic?

Just curious,

RecentCoin

#5 Nimmit

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  • Real Name:Sam West
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Posted 28 July 2004, 18:13

Hi,
I had to look into this for something i was doing a while ago. To the best of my knowlage, it is up to the customer to take care of VAT and import duties.

Here are some usefull links that may help you

To find out import duties on an item
http://europa.eu.int/comm/taxation_customs...tarchap?Lang=EN

Us embassy info on uk import
http://www.usembassy.org.uk/fas/import_procedures.htm

uk customs and excise
http://www.hmce.gov.uk/business/importing/importing.htm

Also If the item is a "gift" i dont THINK you have to pay any.

Hope this helps a bit

Sam
Knowledge is knowing that a tomato is a fruit, wisdom is not putting one in a fruit salad :D

#6 Nimmit

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  • Real Name:Sam West
  • Location:United Kingdom

Posted 28 July 2004, 18:15

recentcoin, on Jul 23 2004, 03:13 AM, said:

Considering that the internet is, well, borderless, how do you plan on routing traffic?

Just curious,

RecentCoin
You could have a gateway page or a 'cloak' (although search engines wont like the latter!)
Knowledge is knowing that a tomato is a fruit, wisdom is not putting one in a fruit salad :D