1. And... we're back. You'll notice that all of your images are back as well, as are our beloved emoticons, including the infamous :foo: We have also worked with our server folks and developers to fix the issues that were slowing down the site.

    There is still work to be done - the images in existing sigs are not yet linked, for example, and we are working on a way to get the images to load faster - which will improve the performance of the site, especially on the pages with a ton of images, and we will continue to work diligently on that and keep you updated.

    Cheers,

    Fok on behalf of the entire Styleforum team
    Dismiss Notice

"House of Fraser" UK on-line clothing store still charges international customers VAT for items ship

Discussion in 'Classic Menswear' started by Devoti, Jun 1, 2013.

  1. Journeyman

    Journeyman Senior member

    Messages:
    6,774
    Joined:
    Mar 29, 2005
    Location:
    Brisbane, Australia
    

    Agreed.

    CT does the same for Australian customers - the price charged on the AU version of the CT website is considerably higher than it should be allowing for the usual exchange rate. What's more, it's not as though CT even has a bricks-and-mortar store in Australia. They don't - so when buying from the AU version of the website, the goods are still processed in exactly the same way and sent from exactly the same processing centre as they would be for orders purchased through the UK website, so it's not as though there are any additional costs incurred by CT in selling to Australia.



    Well, Malford is a bit different because a) it's a part-time operation as the owner-operator has a full-time job doing something else; and b) the prices offered by Malford are ridiculously low already. He used to sell on the Buying & Selling subforum before setting up his own website, but it's still a part-time venture.

    I understand the point you're making but if you're going to use Malford of London as an example, then you should start pointing out that UK members of Styleforum don't deduct VAT when selling on eBay or the Buying & Selling subforum.
     
  2. mimo

    mimo Senior member

    Messages:
    7,379
    Joined:
    Aug 16, 2012
    Malford may not actually be VAT registered. I haven't checked. Businesses below a certain turnover don't have to be, and it is a small business after all. If they're not VAT registered, there is no VAT to discount.

    Try Exquisite Trimmings from the UK, too. I can personally attest to the great value he offers - VAT deducted and SF discounts too.
     
  3. jssdc

    jssdc Senior member

    Messages:
    725
    Joined:
    Feb 19, 2013
    Location:
    New York
    Sorry gents, wasn't trying to call out Malford. Cool shop with great values.

    My beef with CT is less their lack of VAT deduction than the silly price differentials between geographies. My suspicion is that they have a sense that the US market will tolerate higher prices since there's less competition in their particular space - no TML or Hawes and Curtis in the states.
     
  4. Henry Carter

    Henry Carter Senior member Affiliate Vendor

    Messages:
    4,438
    Joined:
    Oct 27, 2009
    Location:
    On the Monaro, NSW.
    Malford is around the other way, if I'm to interpret correctly, international prices are already VAT free and he absorbs the cost for EU customers (a tiny part of his business). Correct me if I'm wrong.

    Here, our version GST (goods and services tax) which admittedly is only 10% works similar in that you only have to be registered for it if you turn over a certain amount $100k in our case so I'm not registered for it either, saving me from a heap of paperwork every quarter. The downside to that though is that you still do have to pay GST on imports and purchases which you can't claim back if you are not registered.
     
  5. Canadianskeezix

    Canadianskeezix Member

    Messages:
    5
    Joined:
    Jan 15, 2014
    To the extent anyone is keeping track, I ought to have mentioned that Duchamp also deducts the VAT for international orders. Kudos to them, because it seems (from the comments on this thread) that companies like Duchamp and Selfridges are in the minority.
     
  6. Chowkin

    Chowkin Senior member

    Messages:
    554
    Joined:
    Mar 8, 2012
    Location:
    Hong Kong
    If Malford is displaying all prices ex-VAT and charges both EU customers and non EU customers the same prices, then he is being unfair to non-EU customers as he would make a smaller profit on his EU sales by absorbing the VAT.
     
  7. mimo

    mimo Senior member

    Messages:
    7,379
    Joined:
    Aug 16, 2012
    - Most vendors deduct VAT; it seems to be some of the bigger ones who play this game

    - I think Malford is not actually VAT-registered, so there's none to add/deduct; this is common with small businesses
     
  8. Journeyman

    Journeyman Senior member

    Messages:
    6,774
    Joined:
    Mar 29, 2005
    Location:
    Brisbane, Australia
    

    Correct - you need to have over a certain amount of income in order for it to be mandatory to register for VAT. If your business income is below that, it's not compulsory and my understanding is that Malford of London falls into this category. So, he's not ripping anyone off.
     
  9. mdras

    mdras New Member

    Messages:
    2
    Joined:
    Dec 3, 2012
    They seem to keep their VAT policy. I put an order to be delivered to South Korea a few days ago, and they boldly rejected to deduce the VAT fraction from the price. Currently, the parcel is being held by DHL Korea as I am refusing to receive it. This is the first experience of such for me; no other UK-based seller from whom I have made purchases up till this point reacted this way.
     
  10. Canadianskeezix

    Canadianskeezix Member

    Messages:
    5
    Joined:
    Jan 15, 2014
    Liberty London does refund the VAT, but you wouldn't know it from their website or online ordering process. Orders to be shipped outside the EU are subject to a vague "taxes" charge, equal to what the VAT would have been. If you email them after you've received the goods and have decided not to return them, they will refund your credit card the amount of the taxes/VAT. They are quite friendly and prompt about it.

    But, of course, unless a customer asks about a refund, they would have no way of knowing.
     
  11. whyme?

    whyme? Senior member

    Messages:
    175
    Joined:
    Feb 13, 2008
    ^ have you got a refund on this lately? about to pull the trigger on some shoes that i suspect are almost out of stock and they still haven't gotten back to me on the whole VAT refund issue and can't nobody on the phone can tell me for sure (!)..

    almost inexcusable to be automatically charging non-EU residents VAT in this day and age. Most decent webstores detect your location and deduct such charges automatically.
     
  12. Journeyman

    Journeyman Senior member

    Messages:
    6,774
    Joined:
    Mar 29, 2005
    Location:
    Brisbane, Australia
    I think that their argument is that they don't charge non-EU residents VAT.

    Instead of charging you VAT, businesses such as House of Fraser just happen to charge non-EU residents precisely the same price as an EU resident pays when VAT is included. In other words, they're not charging you VAT and then keeping the VAT - they're practicing discriminatory pricing and they're charging non-EU residents a higher price than they charge EU residents.
     
  13. whyme?

    whyme? Senior member

    Messages:
    175
    Joined:
    Feb 13, 2008
    ^ their loss. i'll take my shopping to continental european stores that automatically deduct vat (ie. you pay 20% less than their marked price.) - TBS, caliroots, our legacy, et. al.

    i've only ever had trouble claiming VAT with the british webstores.
     
  14. Canadianskeezix

    Canadianskeezix Member

    Messages:
    5
    Joined:
    Jan 15, 2014

    It really is appalling. They must figure international customers are more committed, are willing to pay the U.K. price they see on the website, and will put up with being gouged. In comparison, there are companies like Selfridges, who want to foster an international reputation, and whose website will both deduct the VAT and calculate duties and taxes payable by the customer in his/her home country. Companies like Selfridges are going to win with e-commerce, while House of Fraser will piddle along.
     
  15. Dandy Wonka

    Dandy Wonka Senior member

    Messages:
    680
    Joined:
    Dec 19, 2013
    Location:
    Sydney, Australia

Share This Page

Styleforum is proudly sponsored by