Quote:
Originally Posted by Elfwreck
Is the customer *required* to pay VAT, or is the retailer required to pay it, and permitted to pass the cost along to the customer? (Also, is the customer required to pay it, or import fees, for purchases made out of the country & brought home later?)
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VAT is basically always charged, but businesses can later claim it back. If you're selling to the public, you have to price your product including VAT. If you're only selling to businesses (at least in theory), you can advertise the price without VAT (as long as you note that).
Basically, you see one price as a consumer which includes VAT. What you see is what you pay.
If you buy something from within the EU, same rules apply - VAT's been paid. If you import anything from outside (except for a few cases where treaties apply VAT), then if the item value is over a given margin VAT (over £18 in the UK) and import duty (over £130 in the UK,
and if the duty is £9 or more), then you get to pay.
(Plus some extras for alcohol, tobacco and so on)
Of course, it's amazing how many people
don't pay when they purchase and download something which costs over £18 from, say, America. Which is
technically tax fraud.