International Pricing - NON-EU (soon to be non-UK)

Discussion in 'Ecommerce Forum' started by JPMiddleton, Dec 10, 2020.

  1. JPMiddleton

    JPMiddleton UKBF Regular Free Member

    275 35
    We have always done the following on our site:

    UK/EU price - £10 (inc vat)
    Non-EU price - £10

    We’ve typically used the extra margin to subside delivery costs, however with the UK leaving the customs union deal or no deal (as far as I can tell) I suspect many EU customers will probably be quite savvy and if they’re going to be paying import VAT and a handling fee upon arrival, they will expect a cheaper price at the point of purchase.

    Just wondering what thoughts others may have and if you plan to change what you’re doing currently.
     
    Posted: Dec 10, 2020 By: JPMiddleton Member since: Aug 18, 2011
    #1
  2. riskov

    riskov UKBF Newcomer Free Member

    1 0
    we will look at the price on the market in the UK and make a decision based on it
     
    Posted: Dec 13, 2020 By: riskov Member since: Dec 13, 2020
    #2
  3. Mr D

    Mr D UKBF Legend Free Member

    26,286 3,218
    Currently I have UK price including postage, overseas price on UK site means extra postal charge for the buyer.
    The foreign sites we sell price including postage is used. Except around dates that Brexit is set for we have a fair amount of international sales.

    All prices are set to at the very least cover additional costs. A chunk of the items its slightly larger profit too.

    I have a list of prices to use depending on which deal we get. WTO deal price was updated a couple of months back.
    Can be implemented late one night in a short time.
     
    Posted: Dec 13, 2020 By: Mr D Member since: Feb 12, 2017
    #3
  4. JPMiddleton

    JPMiddleton UKBF Regular Free Member

    275 35
    The question was more relating to VAT to be honest, we currently charge the same to UK and international and enjoy the extra margin (and use it to subsidise express delivery to the US, for example).

    US and 'international' customer don't care they're paying the same price as UK customers, but I imagine EU folk will be a bit more savvy in realising that should be seeing a lower price in 2 weeks compared to now, in their opinion.
     
    Posted: Dec 14, 2020 By: JPMiddleton Member since: Aug 18, 2011
    #4
  5. Rob Johnson

    Rob Johnson UKBF Newcomer Free Member

    4 0
    We have the same situation with customer paying the same total price regardless of location. It's because of the vat handling limitations of Squarespace. We have chosen to continue to do so for EU countries and have put an explanation on the shipping page of the store saying that shipping and handling costs are subsidised. It's early days but no one has queried the pricing yet. That may change when they get charged import duty and courier handling costs.
    It all changes again in 6 month when OSS comes in, I'm concentrating efforts for getting things in place for that.
     
    Posted: Jan 9, 2021 By: Rob Johnson Member since: Jan 9, 2021
    #5
  6. lesliedocherty

    lesliedocherty UKBF Ace Free Member

    2,281 317
    Where are you seeing the information that there is no VAT charged on orders into the EU ??
    I was under the impression it was only orders over £130 that may not attract VAT, but it hasn't been set in stone yet.
     
    Posted: Jan 9, 2021 By: lesliedocherty Member since: Jun 17, 2006
    #6
  7. Rob Johnson

    Rob Johnson UKBF Newcomer Free Member

    4 0
    For the next 6 months if your are under the annual sales threshold of the particular EU country there is no need to charge vat on a sale. Instead it will be collected from the customer on delivery. That changes after 1st July due to OSS. That's my understanding anyway.
     
    Posted: Jan 9, 2021 By: Rob Johnson Member since: Jan 9, 2021
    #7
  8. lesliedocherty

    lesliedocherty UKBF Ace Free Member

    2,281 317
    Can you send a link to that information please ?
     
    Posted: Jan 9, 2021 By: lesliedocherty Member since: Jun 17, 2006
    #8
  9. Rob Johnson

    Rob Johnson UKBF Newcomer Free Member

    4 0
    I can't post links but search oss EU vat and you'll find what you need
     
    Posted: Jan 9, 2021 By: Rob Johnson Member since: Jan 9, 2021
    #9
  10. lesliedocherty

    lesliedocherty UKBF Ace Free Member

    2,281 317
    I have looked and cannot see anything that is recent and tells me not to charge any VAT to customers in EU under £135
     
    Posted: Jan 9, 2021 By: lesliedocherty Member since: Jun 17, 2006
    #10
  11. Rob Johnson

    Rob Johnson UKBF Newcomer Free Member

    4 0
    I think we must be talking cross purpose and also diverting from the OP.
     
    Posted: Jan 9, 2021 By: Rob Johnson Member since: Jan 9, 2021
    #11
  12. JamieM

    JamieM UKBF Ace Free Member

    2,322 350
    If fulfilling an order from the UK, you don't charge any VAT to the EU because it is an export and should be zero rated.

    https://www.gov.uk/guidance/vat-exports-dispatches-and-supplying-goods-abroad#vat-on-exports

    The EU country will charge the customer import VAT if the value is above €22. And duty if the value is above €150. Plus whatever their clearance/admin fee is.

    Here is an explanation and examples for Ireland:

    https://www.revenue.ie/en/importing...nal-use/buying-goods-from-outside-the-eu.aspx
     
    Posted: Jan 9, 2021 By: JamieM Member since: Mar 22, 2006
    #12
  13. lesliedocherty

    lesliedocherty UKBF Ace Free Member

    2,281 317
    Thanks very much, that clears that up for me
     
    Posted: Jan 9, 2021 By: lesliedocherty Member since: Jun 17, 2006
    #13