8mm Forum: What is the V.A.T. tax? (concerning Derann)

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Posted by Osi Osgood (Member # 424) on January 20, 2007, 12:19 PM:

I have noticed that when I buy something from Derann films, they have a V.A.T. tax that actually lowers the price. For instance, I just bought "Hooper" (optical sound) from Derann, and it was originally 59.95 pounds, and I was happy to find out that it was dropped, (via V.A.T.) to 51.00 (or so) pounds for the film. That's always a nice suprise.

So what is this V.A.T., and why don't I see any other film companies offering this?

This is probably a question for the U.K. members.

Posted by Maurizio Di Cintio (Member # 144) on January 20, 2007, 12:35 PM:

Not just UK members but European in general.
V.A.T. stands for valued added tax: this is something similar to American "sales tax"; the main difference is that VAT is usually already included in the sale price, ,whereas in the USA stores usually add a certain percentage to the list price.
In Europe the percentage of VAT varies quite a bit:it's about 16% in the UK, 20 in Italy, maybe 19 % in Germany.

When I was living in the USA I bought a feature from Derann and they discounted it for the amount of VAT.

Unfortunately I had to pay American import duties, which absorbed the discount.

Hope this helps.

Posted by Osi Osgood (Member # 424) on January 20, 2007, 02:09 PM:

Okay, V.A.T. is explained. Now, why don't the other super 8 dealers have the V.A.T. thing going?

Posted by Stewart McSporran (Member # 128) on January 20, 2007, 06:39 PM:

I suspect they don't offer it for one of four reasons:

1) They simply don't know about it.
2) They're not VAT registered and don't think it applies to them.
3) They're private sellers.
4) They like the extra profit.

There are VAT regulations for visitors leaving Europe; [URL=http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageTravel_ShowContent&propertyType=document&resetCT=true&id=HMCE_PROD_007779 ]Here's the UK government web page on tourists and VAT.[/URL]

The best thing to do is simply ask.

Note: people selling privately here and through E-Bay will most likely not be charging you VAT.

I'm not an expert on this; I only know how to handle VAT for my day to day business (and even then I have an accountant) not in a retail manner.

VAT also hits us Europeans (on a seemingly random basis) when we import stuff from outside Europe.

Stewart

ps. In the UK it's 17.5% for goods.

pps. Anyone know why the URL link isn't showing properly?

Posted by Winbert Hutahaean (Member # 58) on January 22, 2007, 08:55 AM:

Stewart,

I think the URL does not work because too long.

Here we go

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageTravel_ShowContent&propertyType=document&resetCT=true&id=HMCE_PROD_007779

My question to you, since Derann is a VAT registered company if I but directly from them at their shop and bringing the film out of the European Union, will I also get VAT refunded?

In Australia this is called GST refund scheme/

My question is based on the fact when I was in Paris (and some other EU members) everytime I purchased something, they would provide me with tax statement. On the way back home, at the Airport, I could show the tax statement and got some refund. Will this also apply for shopping at Derann?

thanks,

Posted by Steven Sigel (Member # 21) on January 22, 2007, 09:59 AM:

To Maurizio :

There is no Customs duty on film in the USA -- you should not have had to pay anything.

I suspect you were dealing with UPS - I had to fight with them a few times when prints came over to tell them the correct US Tariff code for film to show them that it should be free -- but they eventually fixed it.

Posted by Stewart McSporran (Member # 128) on January 22, 2007, 12:47 PM:

Winbert,

Exactly the same thing exists in the UK. You present your purchases to customs on leaving the country. I'm not sure where you get the certificates from if the shop doesn't have one; search the hmrc website.

Stewart

Posted by Winbert Hutahaean (Member # 58) on January 23, 2007, 07:37 AM:

Stewart,

I think all VAT registered shops should have that certificate, unless, as you have noted before, they want extra profit (or lazy..because eventually they would not get any extra knowing they have to pay to the government ... unless ...)

This is a different thing with Australian VAT refund scheme. In Australia, we don't need to ask for the certificate. At the airport, just provide the VAT refund office with your slip/invoice/factur/etc. As long as it shows the Australian tax numbers, the 12% will be refunded. I even once got tax refund by showing a simple slip with a hand written description on that and a stamped tax number (not profesionally printed one)!

I think now we leave Derann to answer this.

Osi you have to find this out, knowing you are going to visit UK and (surely will be) buying some films. If you can get that certificate from Derann you will get the refund at any EU airports , while you don't need to pay for shipping!

cheers.

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