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

[JPMiddleton]

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.

 

[riskov]

we will look at the price on the market in the UK and make a decision based on it

 

[Mr D]

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.

 

[JPMiddleton]

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.

 

[Rob Johnson]

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.

 

[lesliedocherty]

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.

 

[Rob Johnson]

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.

 

[lesliedocherty]

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.

Can you send a link to that information please ?

 

[Rob Johnson]

I can't post links but search oss EU vat and you'll find what you need

 

[lesliedocherty]

I have looked and cannot see anything that is recent and tells me not to charge any VAT to customers in EU under £135

 

[Rob Johnson]

I think we must be talking cross purpose and also diverting from the OP.

 

[JamieM]

I have looked and cannot see anything that is recent and tells me not to charge any VAT to customers in EU under £135

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

 

[lesliedocherty]

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

Thanks very much, that clears that up for me