Niche and VAT payments

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Rob99
Posts: 7
Joined: 3 years ago

#1: Post by Rob99 »

Niche charge the VAT (20%) on all orders shipped outside the UK, even though "exports" are NOT subject to VAT. So effectively if you live outside the UK you pay EXTRA. That means if the UK selling price is £799, the VAT is £133 (633+20% of 633= £799) which is the surcharge you will pay.


...split from Niche Duo 83mm flat burr grinder by moderator...

malling
Posts: 2932
Joined: 13 years ago

#2: Post by malling »

They don't charge foreign customers VAT it's a misunderstanding, what they do is that they run dual pricing. One price for GB that includes British VAT and one for none GB customer that is without VAT at a 20% higher price. This was an allowed practice not that long ago, probably they are unaware (or rather I hope they are) that the practice been made illegal by the English government last term.

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Jaroslav
Posts: 614
Joined: 2 years ago

#3: Post by Jaroslav »

That's an interesting perspective, however if the price difference between UK net price and EU net price is the exact amount you pay in UK as VAT, then I'd call it what it actually is - UK VAT. It's the amount they deliberately chose not to deduct (after brexit), but should be deducting when you order from abroad (just like every other seller), or when you're tax-exempt in the UK. Nevertheless, their reasoning is that the price is the same for everyone. They know very well that it isn't, they know they've dual pricing, they know perfectly well what they're doing and it's done purposely. They gaslight when you ask about it.

"We have a standard price of £499 for all customers and this has always been our policy, so you will need to pay this price plus any extra fees on top."

"You will need to pay the added customs on top of the £499 price, this is our pricing policy sorry."
Jaroslav

AuFinger
Posts: 42
Joined: 1 year ago

#4: Post by AuFinger »

The price is the price. If you don't like it, don't buy it. The wife bought some stupid expensive purse from the UK and it was the same deal. Those who don't like it shouldn't start a VAT debate in every Niche thread.

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Jaroslav
Posts: 614
Joined: 2 years ago

#5: Post by Jaroslav replying to AuFinger »

The price is the price. And "standard price for all customers" should also be "standard price for all customers". If it isn't, then we'll talk about it if that's okay with you.
Jaroslav

coffeeOnTheBrain
Posts: 634
Joined: 5 years ago

#6: Post by coffeeOnTheBrain »

Thank you for bringing it up I do find the VAT discussion valid. That said I belief that repetitive posts fall under certain forum rule and we are far beyond that point.
I am not a moderator, but I have a specific condition that is triggered by repetition.

malling
Posts: 2932
Joined: 13 years ago

#7: Post by malling »

Jaroslav wrote:That's an interesting perspective, however if the price difference between UK net price and EU net price is the exact amount you pay in UK as VAT, then I'd call it what it actually is - UK VAT. It's the amount they deliberately chose not to deduct (after brexit), but should be deducting when you order from abroad (just like every other seller), or when you're tax-exempt in the UK. Nevertheless, their reasoning is that the price is the same for everyone. They know very well that it isn't, they know they've dual pricing, they know perfectly well what they're doing and it's done purposely. They gaslight when you ask about it.

"We have a standard price of £499 for all customers and this has always been our policy, so you will need to pay this price plus any extra fees on top."

"You will need to pay the added customs on top of the £499 price, this is our pricing policy sorry."
Not deducting VAT on foreign customers and not reporting said VAT to the authorities is a rather serious offence, as it's VAT fraud and those an illegal practice and would be punishable by law.

Dual pricing wasn't until last year an illegal practice, call it a loophole in the legislation that was first closed last year. Their reply to people about flat price is as good as saying that they are using dual pricing, something that wasn't an offence before last year. Immoral perhaps, but not illegal as such unlike what you write. Its the classical grey zone until politicians realise the loophole.

But it's still dual pricing not VAT, they way of doing it is a normal way of running dual pricing, do note VAT isn't even mentioned on purchase. That's classic for companies who like this way of doing business.

Before something can be counted as VAT certain premises need to be in place.

Let's just end it here as we are just going circles and return to talk about the grinder.

I said what I need to say about this matter, I don't think anyone would be in doubt about what my stance is on the matter, as I made that clear. But I doubt more can be attained by arguing more about it. Now it's out there and must be for the individual to decide if they want to purchase under such conditions or not, unlikely Niche changes their practice until they are charged.

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Jaroslav
Posts: 614
Joined: 2 years ago

#8: Post by Jaroslav »

Yes, I agree with you completely. VAT only appears when you order to an address in UK.

Nino, sorry we made you feel bad.
Jaroslav

coffeeOnTheBrain
Posts: 634
Joined: 5 years ago

#9: Post by coffeeOnTheBrain replying to Jaroslav »

Thank you that is very considerate of you.
I am pretty sure my condition is non medical and rather common, episode's usually don't last too long and leave no permanent damage ;)

espressoren
Posts: 471
Joined: 1 year ago

#10: Post by espressoren »

Oh man, yet another VAT debate! :) I think almost everything to be said on it has been said, and people still disagree. It is what it is, and yes if we are loud enough Niche might change, and yes who knows if they would raise the price in UK or deduct 20% from everyone else.

The only thing I might add is that I think what makes it more confusing and ripe for debate is that most countries require advertised prices to be tax inclusive - the sticker is what you pay after tax. In the US, the sticker price never includes tax, it is always added on when you pay. For this reason I think US customers are less prone to even think about it, they see the price, don't see tax added, and they only pay that plus shipping, just like they are used to.

I'm not arguing that one method is better, just that if you're shopping where prices normally include tax, and then suddenly you're not subject to tax, it is reasonable to expect a discount, and hard to deal with opaque pricing when the same advertised price is both tax inclusive for some and not tax inclusive for others.

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