Online Pricing - EU/NON EU customers

Discussion in 'Ecommerce Forum' started by JPMiddleton, Sep 29, 2020.

  1. JPMiddleton

    JPMiddleton UKBF Regular Free Member

    264 33
    So I’ve noticed recently when buying stuff on UK websites to post to a friend in the US, that there isn’t a consistent way that pricing is handling with regards to VAT (or lack thereof).

    There are stores that:

    1) change the pricing immediately when you visit from a US IP and remove VAT.
    2) remote VAT at checkout.
    3) charge exactly the same price to Us customers but just remove the acknowledgment of VAT, thus increasing their margin.

    Does anyone have any advise on how they handle it and what works well?
     
    Posted: Sep 29, 2020 By: JPMiddleton Member since: Aug 18, 2011
    #1
  2. apricot

    apricot UKBF Regular Free Member

    368 36
    US customers don't care whether they are paying vat or not as long as they are not b2b customers. Go with number 3.
     
    Posted: Sep 30, 2020 By: apricot Member since: Apr 7, 2012
    #2
  3. consultant

    consultant Your Business Community Staff Member

    5,696 805
    Get a decent ecommerce system that can handle what is actually a basic transaction function.
     
    Posted: Sep 30, 2020 By: consultant Member since: Jan 21, 2008
    #3
  4. Paul Norman

    Paul Norman UKBF Ace Free Member

    2,823 889
    It really is this simple, of course.

    Your store should be set up to handle orders from different jurisdictions. For VAT treatment, the jurisdiction is where the transaction is fulfilled.

    There are a number of ways systems handle this, and the better ones do all of the ways.

    An IP address, of course, is not absolutely linked to where you want an item sent.
     
    Posted: Sep 30, 2020 By: Paul Norman Member since: Apr 8, 2010
    #4
  5. JPMiddleton

    JPMiddleton UKBF Regular Free Member

    264 33
    Of course, a system can handle any of the above. And our own website handles this well.

    I am just curious, with brexit looming, what “policy” stores take- keep the extra margin or remove the tax and “discount” the order.
     
    Posted: Sep 30, 2020 By: JPMiddleton Member since: Aug 18, 2011
    #5
  6. Paul Norman

    Paul Norman UKBF Ace Free Member

    2,823 889
    From a policy perspective we will be pricing net of VAT for non UK destinations - with the slight caveat that we don't know yet exactly what the deal with be.

    I am assuming no deal at the moment.
     
    Posted: Sep 30, 2020 By: Paul Norman Member since: Apr 8, 2010
    #6
  7. Mr D

    Mr D UKBF Legend Free Member

    24,926 3,037
    Perhaps some sort of system that gives US prices excluding VAT and EU prices including VAT?

    Failing that just charge everyone the same price and not charge the VAT where it isn't chargeable.
     
    Posted: Sep 30, 2020 By: Mr D Member since: Feb 12, 2017
    #7
  8. JPMiddleton

    JPMiddleton UKBF Regular Free Member

    264 33
    Do you mean something like this?

    UK price: £10 (inc VAT)
    ROW (assuming no EU deal) price: £10 with no VAT charged.

    That may be fine for the US, but I think EU customers will expect VAT to be removed as they’re going to have to pay customs and import if there is no deal, and even potentially if there is.
     
    Posted: Sep 30, 2020 By: JPMiddleton Member since: Aug 18, 2011
    #8
  9. DontAsk

    DontAsk UKBF Ace Free Member

    1,548 231
    Some suppliers use the "VAT" element towards the extra postage to foreign parts.
     
    Posted: Sep 30, 2020 By: DontAsk Member since: Jan 7, 2015
    #9
  10. JPMiddleton

    JPMiddleton UKBF Regular Free Member

    264 33
    That’s not something I’ve encountered- you mean basically using it to upgrade to a faster courier?
     
    Posted: Sep 30, 2020 By: JPMiddleton Member since: Aug 18, 2011
    #10
  11. Mr D

    Mr D UKBF Legend Free Member

    24,926 3,037
    Perhaps you could charge them all in and send DDP.
     
    Posted: Sep 30, 2020 By: Mr D Member since: Feb 12, 2017
    #11
  12. Mr D

    Mr D UKBF Legend Free Member

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    Some of us simply charge extra for the extra postage to cover it in full.
     
    Posted: Sep 30, 2020 By: Mr D Member since: Feb 12, 2017
    #12
  13. JPMiddleton

    JPMiddleton UKBF Regular Free Member

    264 33
    i like this idea and have already enquired with our courier, DHL. Unfortunately a good portion of orders are small and light so go via Royal Mail and that won’t be an option for those orders.
     
    Posted: Sep 30, 2020 By: JPMiddleton Member since: Aug 18, 2011
    #13
  14. Mr D

    Mr D UKBF Legend Free Member

    24,926 3,037
    Then website setting to not charge them VAT would seem to apply.

    As I recall its a minor bit of coding in the payment settings.
     
    Posted: Sep 30, 2020 By: Mr D Member since: Feb 12, 2017
    #14
  15. DontAsk

    DontAsk UKBF Ace Free Member

    1,548 231
    No, I mean exactly what I said.
     
    Posted: Sep 30, 2020 By: DontAsk Member since: Jan 7, 2015
    #15
  16. OnePatch

    OnePatch UKBF Newcomer Free Member

    6 0
    US customers really didn't care about, whether they are paying vat or not as long as they are not b2b customers. As my opinion best one one is option 3, i.e charge exactly the same price to Us customers but just remove the acknowledgment of VAT, thus increasing their margin
     
    Posted: Oct 12, 2020 By: OnePatch Member since: Sep 22, 2020
    #16