TAX - Yuk! | FerrariChat

TAX - Yuk!

Discussion in '308/328' started by Longstone Tyres, Aug 18, 2022.

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  1. Longstone Tyres

    Longstone Tyres Formula 3
    Sponsor

    Feb 2, 2006
    2,024
    Full Name:
    Dougal
    One thing has just raised its head. It is apparent that when you look at our web site, if you are outside the EU it should not display the additional 20% VAT that is only applicable to the EU. ( we hope to fix this soon). If you are outside the European Union you don't pay VAT, and as you go through your basket and tell it what country you are from our web site will calculate any shipping if there is any (which has become more obstructive after the epidemic and that Russian crazy guys behavior) but it will also calculate weather you pay VAT or not.

    https://www.longstonetyres.co.uk/classic-car-tyres/ferrari.html

    If you just go through the buying process and just add your country (you don't need the rest of your address, contact or payment details at this point, just country) it should calculate your costs.
     
  2. Patrick Dixon

    Patrick Dixon Formula 3

    Mar 27, 2012
    1,130
    UK
    Excellent. So for the UK we get tyres tax free since we are outside the EU? Simples eh?
     
    marklintott likes this.
  3. Longstone Tyres

    Longstone Tyres Formula 3
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    Feb 2, 2006
    2,024
    Full Name:
    Dougal
    Oo er no not quite as good as that i'm afraid. That VAT is UK tax that we must pay to the blood sucking leaches in the UK government so they can buy fur coats for their mistresses.

    When you are in the EU the VAT is generally 20%, then their is also the duty to pay now as well, because of some crazy vote we recently had, we told the rest of Europe to get stuffed and now have to pay. We arrange and pay all of duty and VAT before shipping. that money then goes to the EU governments so they can buy fur coats for their mistresses.

    The outside the EU our web site shows the VAT (currently, which we should soon be able to remove in the relavent countries) However outside the EU when you go through to your basket, and fill in your country, it will then re calculate your cost so it doesn't charge you the V(odka) A(nd) Tonic.
     
  4. Patrick Dixon

    Patrick Dixon Formula 3

    Mar 27, 2012
    1,130
    UK
    OK, it seems you are confused. Now we are outside the EU, you should ONLY charge VAT to UK customers. Customers outside the UK should be charged ex-VAT and they will have to pay whatever local taxes and duties are due on top.

    I'm am sure you knew how all this would work when you voted to leave/remain in the EU, even if you are a bit muddled by the reality now.
     
    MFlanagan likes this.
  5. Longstone Tyres

    Longstone Tyres Formula 3
    Sponsor

    Feb 2, 2006
    2,024
    Full Name:
    Dougal
    Hello Patrick

    We are not confused.

    Let's be absolutely clear about this element of our discussion - I certainly did not vote to leave the EU and i am embarassed about the Brexit result. (though i do see the EU as a far from perfect organisation, I did not want to leave. But lets not get involved in this.)

    Within the UK yep just pay the VAT as the web site states - that one is at least easy.

    Shipment within the EU our web site calculates you a cost including VAT and all taxs. within the EU the customer will pay what the web site charges and no more. (We effectively collect taxes for the countries in the EU and pay it to them via our carrier companies "Delivery Duty Paid" service. ( the credit card charges for which, effectively buy fur coats for the mistresses of the credit card company bosses, as we pay a % to the credit card companies for the pleasure of collecting tax for the various countries, but thats life.))

    Outside Europe we ship direct to the customer, often shipping charges have been free. Currently because of the crazy business in the Ukraine and other world issues shipping charges are much higher. However if you go through the buying process it will tell you of any shipping charges if there are any.

    Then here is the weird bit that is beyond our control, and nothing to do with us or Brexit. In principal if we ship tyres to a country, for instance USA, The US customes should collect the taxes off the recipient. However in by far the majority of cases the consignment get sent straight to the recipient with out any extra charges. I dont know why. We do everything correct from our side. It is as if when we ship to a retail address the customs just can't be bothered.

    If you look through these pages you will find a series of happy customers who are amazed to have their tyres shipped half way accross the world in often less than a week and the costs are remarkably low. (I almost feel sorry for our shipping companies. i dont know how they make a living. there an be no fur coats for their mistresses)
     
  6. samsaprunoff

    samsaprunoff F1 Rookie
    Silver Subscribed

    Jun 8, 2004
    4,457
    Edmonton, AB Canada
    Full Name:
    Sam Saprunoff
    Good day Dougal,

    I routinely ship into the US from Canada (for 18 years now) and found that the US Duty/Taxes and their collection (or not collection) tends to variable, but also dependent upon the shipping company. This is despite the facts that all US inbound shipments, regardless of their mode of transport, are subject to the same US Tax laws ... but like you, it can be hit or miss. That said this is what I have experienced:

    a. Shipping via Post (which eventually gets handed over to USPS), no US Duty/Taxes have ever been charged to any of the US Recipients I have sent items to

    b. If shipping by non Post and using one of the main stream transport firms like Fed Ex, UPS, etc then they are held to the formal standard and so duty/taxes are more likely to be charged. However, even here there can be some variances. That said I believe that if the shipment value is under a certain amount (I think it may be $800 US or even $1000 US) then Duty/taxes are exempt for some States. Some States are more rigorous at their Sales Tax collection and this can vary from State to State

    Also, I think you are very prudent to include DDP (Delivery Duty Paid) on your shipments, as if for some reason the recipient refuses the shipment because of the Duty/Taxes you (the shipper) will be charged for the return of those goods. in Canada the Canada Customs is very vigilant with regards to charging for Duty and Taxes and it is very rare for an item to not be charged Duty/Taxes above a certain amount ($200 I think). Because of this many International companies will refuse to ship to Canada or more particular a non corporate recipient, because of past experiences with recipients refusing shipments because of D/T's owning.

    To whose that think shipping is easy and especially from International destinations...it is not and is far more complex that most realize. Hats off to Dougal and other firms that do a lot of work behind the scenes and are able to negotiate such great shipping rates that they do.

    Cheers,

    Sam
     
  7. Longstone Tyres

    Longstone Tyres Formula 3
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    Feb 2, 2006
    2,024
    Full Name:
    Dougal
    Just to clarify we do the DDP only to the EU. When shipping to the States and Canada generally speaking the customs just dont seem to be bothered, but there is the occasional parcel that gets dealt with by them, but i would think it is less than 1 in 10.
     
  8. samsaprunoff

    samsaprunoff F1 Rookie
    Silver Subscribed

    Jun 8, 2004
    4,457
    Edmonton, AB Canada
    Full Name:
    Sam Saprunoff
    Good day Dougal,

    I can say almost 100% of the time Canada Customs will charge D/T on Canadian inbound shipments once they exceed $200 CAN. My relatively recent tire order from your firm (this Spring) was handed off to Canada Post and they indeed charged D/T. Unfortunately Canada Post mistakenly charged Duty on the tires even though they are duty exempt because they are technically vintage car parts. However, Canada Post did refund the Duty once I notified them of their error and so all I was required to pay was Canada's GST (which is equivalent of your Country's VAT) of 5%.

    Cheers,

    Sam
     
  9. Longstone Tyres

    Longstone Tyres Formula 3
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    Feb 2, 2006
    2,024
    Full Name:
    Dougal
    Hi

    I beleive that generally on a shipment to Canada we put a coment along the lines of "for use on a vintage car over 25 years old" which generally apeases the customs in Canada. we have other similar lines for other countries. Did we forget to put it on your invoice or did the customs office forget to look?
     
  10. samsaprunoff

    samsaprunoff F1 Rookie
    Silver Subscribed

    Jun 8, 2004
    4,457
    Edmonton, AB Canada
    Full Name:
    Sam Saprunoff
    Good day Dougal,

    Your shipment doc and description looked to be there and correct. I suspect that Canada Post simply did not look at the particulars and simply defaulted to full duty/taxes. That said I was surprised at how quickly they remedied the situation. I had to pay all upfront and then submitted your doc,etc and about 3 weeks later I received 2 cheques for the incorrect duty assessment (shipment was sent as two shipments of 2 tires each). Normally it takes months for Canada Post to respond to such issues and so 3 weeks I was both pleased and amazed.

    Cheers,

    Sam
     
  11. Longstone Tyres

    Longstone Tyres Formula 3
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    Feb 2, 2006
    2,024
    Full Name:
    Dougal
    Wow. let me tell you it isnt just the Canadian Post who can drag their feet. the first few months of Brexit were a complete nightmare. Its still tricky, but its not going to go away, so we will make it work for us.

    i dont know if you had that kids book/song in Canada: "we're all going on a bear hunt"
    can't go over it,
    can't go under it
    can't go round it
    Have to go through it!
     

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