Quote:
Originally Posted by Elfwreck
In the US (don't know how this applies to the UK), sales tax is paid by the retailer--and they're allowed, not required, to demand customers pay them for it. Businesses regularly run "we pay the tax!" sales, which work out to a 5-10% discount depending on what state they're in. (There are states with lower sales taxes, and a couple with none, but they don't run "we pay the tax" as promotional sales methods.)
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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Actually, in the US, most states (including California) have a "sales and use" tax. Technically, you're supposed to declare all out of state purchases on which you have not paid any sales tax and pay your state government - usually along with your state income taxes. Individuals rarely do this, but with the current financial crisis, don't be surprised if states suddenly "remember" this little feature of their tax laws.
In Europe, goods coming in from outside the EU have to pay their VAT, which usually means that the recipient gets the bill. (There is no exemption for a "gift" - we've wound up paying VAT on gifts our American friends carefully marked as such.) In France, each incoming shipment for FedEx or UPS or any of the other big shippers is tallied up and an invoice for the VAT is sent out to the recipient. Usually arrives 3 to 5 days after the package does.
Basically, that's the operating principle for how they assess the appropriate VAT on software you purchase online for download. If your credit card billing address is in France, you get hit for French VAT. There's an allowance for stuff you bring back with you from trips overseas, but it's not much. Just that they rarely check your bags unless it's patently obvious you went on a buying spree in Hong Kong or someplace known for the good shopping.
Cheers,
Bev