3 ms·

The VAT is akin to a sales tax. It's paid regardless of where the item is manufactured or distributed from (and mostly regardless of the item). The US typically

The VAT is akin to a sales tax. It's paid regardless of where the item is manufactured or distributed from (and mostly regardless of the item). The US typically applies between 5-10% sales tax on most items. I have no idea why someone from System76 would think it's relevant to have an EU distribution center, but it wouldn't change the VAT. BTW, it's not just the EU that wants you to pay the sales tax when bringing items across the border, but the US also. It just so happens that it's rarely if ever enforced. EDIT I should add that the key difference of the VAT and tariff is that VAT is not made to advantage one product over another. It's simply a sales tax on nearly all products, just like the US sales taxes.

trelane 1y ago
> have no idea why someone from System76 would think it's relevant to have an EU distribution center, but it wouldn't change the VAT. It seems to be the customers asking for one, not System76. They were planning to open one, though. > VAT is not made to advantage one product over another. Like sales tax, there are different (and often zero) rates depending on product (same link as before)
- tzs 1y ago
  >> VAT is not made to advantage one product over another. > Like sales tax, there are different (and often zero) rates depending on product (same link as before) But those different rates depend on the product category, not the product manufacturer or place of origin. The whole point of tariffs is to base rates on place of origin.
  - trelane 1y ago
    > But those different rates depend on the product category, not the product manufacturer or place of origin. They do, though: https://stripe.com/en-ch/resources/more/import-tax-germany https://stripe.com/en-ch/resources/more/import-tax-germany
    - tzs 1y ago
      No, they don't. As noted in the link you provided the VAT rate on an import sale is the same as the VAT rate for a non-import sale.
      - trelane 1y ago
        There is a whole table with different numbers that vary by EU country. Look for "List of (import) VAT rates in EU countries"
        detaro 1y ago
        That's an overview of the VAT in different countries, nothing to do with origins.
        trelane 1y ago
        Aaah. That makes sense. Thanks!
    - orwin 1y ago
      No, they don't. You have at least two VAT rates, and my country has four: - Staple food (rice, basically? Probably flour too) as well as healthcare: 0%. Food and common, staple products (soap, condoms, probably other), some cultural products (books, theater tickets, probably other), electricity, water: reduced rate (5.5%) 'vacation' rate: camping bookings, alternative healthcare, zoo, movies, restaurants (10%). Everything else is 20%, whatever the brand or the producer. I know because I actually checked my transaction tickets for a long time (and my first journey b was writing an OCR to automatically analyze those tickets to ask for VAT reimbursement)

trelane 1y ago

> have no idea why someone from System76 would think it's relevant to have an EU distribution center, but it wouldn't change the VAT. It seems to be the customers asking for one, not System76. They were planning to open one, though. > VAT is not made to advantage one product over another. Like sales tax, there are different (and often zero) rates depending on product (same link as before)

tzs 1y ago
>> VAT is not made to advantage one product over another. > Like sales tax, there are different (and often zero) rates depending on product (same link as before) But those different rates depend on the product category, not the product manufacturer or place of origin. The whole point of tariffs is to base rates on place of origin.
- trelane 1y ago
  > But those different rates depend on the product category, not the product manufacturer or place of origin. They do, though: https://stripe.com/en-ch/resources/more/import-tax-germany https://stripe.com/en-ch/resources/more/import-tax-germany
  - tzs 1y ago
    No, they don't. As noted in the link you provided the VAT rate on an import sale is the same as the VAT rate for a non-import sale.
    - trelane 1y ago
      There is a whole table with different numbers that vary by EU country. Look for "List of (import) VAT rates in EU countries"
      - detaro 1y ago
        That's an overview of the VAT in different countries, nothing to do with origins.
        trelane 1y ago
        Aaah. That makes sense. Thanks!
  - orwin 1y ago
    No, they don't. You have at least two VAT rates, and my country has four: - Staple food (rice, basically? Probably flour too) as well as healthcare: 0%. Food and common, staple products (soap, condoms, probably other), some cultural products (books, theater tickets, probably other), electricity, water: reduced rate (5.5%) 'vacation' rate: camping bookings, alternative healthcare, zoo, movies, restaurants (10%). Everything else is 20%, whatever the brand or the producer. I know because I actually checked my transaction tickets for a long time (and my first journey b was writing an OCR to automatically analyze those tickets to ask for VAT reimbursement)