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Tariffs between EU countries

Discussion in 'Classic Menswear' started by eHaberdasher, Sep 10, 2011.

  1. freedom_fries

    freedom_fries Senior member

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    i don't think the crisis would have an impact on your business - particularly if you're looking at the UK. nothing is going to change regarding the open market (nor with demand, i should think). what are your specific worries?
     


  2. dune

    dune Senior member

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    The euro won't disappear any time soon, no worries there. And the economy isn't more likely to tank than the US one.
     


  3. eHaberdasher

    eHaberdasher Senior member Affiliate Vendor

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    Trade between the EU certainly is the big concern - I suppose the uncertainty of everything gives us the jitters... widespread international recession would certainly impact our business though - it already has, and can easily take a turn for even worse...
     


  4. dune

    dune Senior member

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    Mind if I ask what exactly you are uncertain of? There is always a risk of a double dip recession, but most of the economies in the EU are as sound if not more so than the US one. Don't worry, Germans will have money for luxury/business clothing for a while yet ;)
     


  5. Nicola

    Nicola Senior member

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    If you wait for good times everything will be more expensive. Location,staff for sure will be.

    Don't let a good crisis go to waste.
     


  6. eHaberdasher

    eHaberdasher Senior member Affiliate Vendor

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    Just overall uncertainty/instability, and in general, the unknown. Although I've traveled through Europe and have visited England before, I've never lived in a foreign country, and even in a good economic environment the prospects of moving/living in a foreign land seem somewhat daunting, not just setting up shop but also factoring in moving my wife and 3 school-aged children along with me, and having someone continue to run the US operation...
     


  7. Pembers

    Pembers Senior member

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    GREAT news. I've thought for ages that a company like eHaberdasher or virtualclotheshorse.com would clean up in the UK. There's a huge hole in the market.

    Can anyone think of any UK-based competitors they'd have, beyond the likes of the Harrods sale?
     
    Last edited: Sep 13, 2011


  8. French Dude

    French Dude Well-Known Member

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  9. eHaberdasher

    eHaberdasher Senior member Affiliate Vendor

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    OK - so if you EU guys have to pay the VAT when buying from within the EU, how, if at all, is that more advantageous than purchasing from our US website and having to pay duty? You EU guys don't have to pay duty AND VAT, do you (when we ship from the US)? OR is duty and VAT one in the same?

    Also, if we're based in the UK, there are different VAT rates for non-UK consumers and presumably different thresholds for which the VAT kicks in, correct (or does the VAT apply to all purchases regardless of amount)? How does that work and impact you, the end consumer? Are you able to somehow apply for a refund of the VAT?
     


  10. freedom_fries

    freedom_fries Senior member

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    I kind of touched on this in PMs, but I know what makes me hesitant to buy from US-based stores is the uncertainty: the actual final cost is unpredictable, as is the amount of time necessary for items to arrive, as is the amount of BS you'll have to go through in terms of trips to post-offices, arguments with customs officials, and paperwork/receipts necessary, and so forth.

    Also, duty and VAT are not the same, and depending on the amount of the transaction (and perhaps also depending upon the country), you must pay either VAT only or duty and VAT, which can become very expensive.

    Although VATs differ among EU countries, the EU is an open market and there are no customs controls between EU countries. The VAT you pay is the VAT of the country of origin, and it's usually included in the price. The differences are usually not significant between EU countries anyhow.
     


  11. Nicola

    Nicola Senior member

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    VAT equals sales tax.
    Duty is a duty.

    Consumers see a final price that includes VAT. It's the retailer that deals with figuring out the right VAT rate,collecting it and remitting. Italy has at least three VAT rates. 4% for basic needs. Some foods etc. 10% for other things. 21% now for everything else. Some times consumers get invoices with VAT included. Some times the invoice will show the VAT broken out.

    I already posted a link on distance selling. Did you look it over?
     


  12. E TF

    E TF Senior member

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    VAT certainly applies to all clothing purchases in the UK (except children's clothing), regardless of the amount. You have to include UK VAT in the prices displayed on your UK website, and I believe you would have to charge UK VAT to anyone within the EU buying from your UK website. Likewise if you based yourself in Belgium say, you'd have to charge Belgian VAT on sales to the UK (or anywhere else in the EU) - even if Belgian VAT happens to be a little lower or higher than UK VAT. No refunds. It makes life quite simple as a consumer in the EU - the price you see is the price you pay, even if you happen to be in a different EU state than the retailer.

    Like freedom fries says, the thing that puts me off buying from the US sometimes is the unpredictability - some retailers know how to fill in the customs label, some don't; either way, sometimes it gets stopped at customs, sometimes not; sometimes it takes days, sometimes weeks. If it does get stopped and they decide VAT has to be added, not only to you have to pay the tax, but an admin fee too, plus you'll have to go the post office to collect it. I'd never buy anything sized from a US website, just the thought of all the hassle and expense of returning something that didn't fit puts me off. Plus there's always the nagging sense that you'd have virtually no comeback if the transaction went wrong somehow.
     


  13. eHaberdasher

    eHaberdasher Senior member Affiliate Vendor

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    Yes - I did look at the links... thanks again.... just still trying to wrap my head around it all...
     


  14. eHaberdasher

    eHaberdasher Senior member Affiliate Vendor

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    Thanks for your input. Yet more food for thought.... current VAT in the UK is - what - around 20%? So that charge would be added to the merchandise purchase in the shopping cart before arriving at the total, correct - just like sales tax here in the US? (ie.Brioni suit price: $1,495, then add VAT of 20% which would be $300, total $1,795?)
     


  15. Ich_Dien

    Ich_Dien Senior member

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    All the prices you'd show would have to be inclusive of VAT - It's the law.
     


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