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View Full Version : Do I have to pay VAT tax on goods from Europe shipping into US?



Dutch Lovin' Dressage Rider
May. 21, 2012, 12:19 PM
I just ordered some things from Divosa. In the past, they would attached VAT to my purchases at time of payment. They are no longer longer doing this, because people were paying too much. They said that I will have to pay on my end the UPS or DHL carrier on my end.

Does anyone know how this works?

Thanks!

nhwr
May. 21, 2012, 12:21 PM
If you are having your items shipped to the US (or outside of the EU), Divoza won't charge you VAT because you aren't required to pay it.

I think you might be referring to US import duty, which you may be required to pay if your goods are coming to the US.

Dutch Lovin' Dressage Rider
May. 21, 2012, 12:30 PM
Yes, the goods are being shipping into the US.

Divosa used to automatically attach it to your bill but they don't do that any more. VAT is now 19% when you buy in Holland. I seem to recall getting money back when I walked things through customs at the airport? (been awhile; can't remember).

So how do I figure out how much US import duty I will pay, and do I pay the UPS or DHL guy?

nhwr
May. 21, 2012, 12:57 PM
I just came back from the Netherlands and hand carried a bunch of stuff home, got the stamp sent it back and got the refund. That works the way it always has.

When things are shipped to an address outside the EU, Divoza simply doesn't charge VAT, at least they never have with me.

If the items you purchased are subject to duty (not everything is), the freight carrier usually has the amount due. The rate of duty varies depending on the type of thing you've ordered.

atlatl
May. 21, 2012, 03:06 PM
Here you go; just in case you have trouble sleeping at night :)

http://www.usitc.gov/tata/hts/bychapter/index.htm

Best best is to try and call someone at the port of entry where your goods would be entering the US.

I was very interested in the deal posted not too long ago about directly ordering Petrie boots. I figured out the tariff and decided it was pretty much a wash so ordered from Dressage Extensions figuring it would be easier to do any necessary exchanges.

In short, yes you are obligated to pay duty on those items subject to duty (see enormous list at website above) when you have them shipped to a US address.

honeylips
May. 21, 2012, 03:58 PM
Just so we aren't mixing up apples and oranges, or in this case VAT and US Import Tax.


VAT is "sales tax" charged in europe for goods that stay in europe. If you go in person and bring it back with you = you can get the VAT refunded to you either at the airport or later on your credit card. If you mail order goods to be shipped to the USA by mail - you normally will NOT be charged VAT.

US Import Tax - when you bring goods in your suitcase home with you -= you are limited to bring back $800 worth duty free. Over that you are supposed to pay duty when you get here. You fill out those declaration forms on the airplane....

When you Mail Order goods from europe - you are subject to US import tax - and this is payable to the importer (like UPS/DHL/Fedex). Divoza used to collect this up front and pay for it on your behalf but as they said they are losing money so they stopped doing it.

Derid
May. 21, 2012, 05:03 PM
When you Mail Order goods from europe - you are subject to US import tax - and this is payable to the importer (like UPS/DHL/Fedex). Divoza used to collect this up front and pay for it on your behalf but as they said they are losing money so they stopped doing it.

That's not quite correct....The importer is the purchaser in the example used, UPS/DHL/FedEx are carriers. Carriers charge for moving the freight/cargo. Duty, if the merchandise requires (based on the Harmonized Tarrif Schedules), is collected for the US government by US Customs & Border Protection. For someone to import goods into the country, they will need a "release" of merchandise and this is granted by Customs (regardless if the entry is formal or informal). The only way UPS/DHL/FedEx charges DUTY is if they act as the importer's broker. Generally, only commercial cargo operations uses brokers, however if Customs feels there is a need, then they can require the importer of personal goods to file a formal entry (ie. use a broker). Carriers don't charge US tax.

honeylips
May. 21, 2012, 09:33 PM
true to some extent @Derid. But doesn't match my experience at all.

I order from europe about 4x a year - Divoza, Geblingt, Kandel etc. On all my shipments Fedex/UPS/DHL does act as the customs broker - and charges me for the US import duty. Usually NOT at the time of delivery - usually that bill shows up a few weeks to months later. I have never ever in 10 years of german/dutch purchases received a bill from US customs. Always from the carrier (fedex/ups/dhl) acting as broker.

I have new NAVY BLUE custom boots on their way right now from Kandel via DHL. No VAT, I expect US customs charges via DHL shortly after delivery and payable to DHL. Even with shipping and all - I saved over $500.

Tonkafriend
May. 22, 2012, 11:32 AM
I have new NAVY BLUE custom boots on their way right now from Kandel via DHL. No VAT, I expect US customs charges via DHL shortly after delivery and payable to DHL. Even with shipping and all - I saved over $500.

Those sound amazing! Mind posting a link? Thanks!

alveoli
May. 22, 2012, 12:12 PM
I buy pikeur breeches from amirequi annually and no VAT, no extra charge when I pick up at the post office either. The only charge is the shipping which runs $20-$40 depending on weight and my CC transaction fee of about $4.

honeylips
May. 22, 2012, 12:21 PM
I ordered the Cavallo Pirouette Plus in Blau(navy blue)

http://www.cavallo.info/en/produkte_reitstiefel_dressur

I get mine from Reitstiefel-Kandel.de

Calevo.de - can also get the Cavallo boots in colors as well.

Tamara in TN
May. 22, 2012, 12:34 PM
we are waiting for a $1K part for a machine made in the UK
we have not heard of any extra taxes...but the invoice has not arrived yet either :>

Tamara

Kyrabee
May. 23, 2012, 10:45 AM
I got a saddle from England last year.

I got a bill from Fed Ex about six weeks later for the import taxes.

Last week I got the bill for Idaho sales tax...not bad for 8 months post purchase. I hope I am now finally done paying taxes on it:yes:.

Susan

Tamara in TN
May. 23, 2012, 10:55 AM
in our case the VAT is NA


Tamara

atlatl
May. 23, 2012, 10:58 AM
in our case the VAT is NA


Tamara

That doesn't mean you won't get hit with import duty which as mentioned above is different from Value Added Tax which, to my understanding, is collected from residents of the country of origin.