Vat Information

We want to be fully transparent, when it comes to VAT and import taxes. This to avoid misunderstandings, delayed shipments and unnecessary custom handling fees. The majority of our packages, ship out of our warehouse in Kherson, Ukraine. Since Ukraine is an independent country, VAT and in some cases import tax, should be paid to your local tax authorities.

To give you the best possible understanding how VAT and import taxes is handled in your case, we have split this page into three sections. One for the EU, one for the UK, and one for the US/rest of the world citizens.

The European Union

In short – If you are based in the EU, then your local VAT will be added at checkout. Say you are in Germany and have a €100 basket to check out, then 19% German VAT will be added at checkout, and your order value including your local taxes will be €119. With the VAT prepaid, your package will be on the way, going right through your local custom service, without any additional taxes, handling fees or time wasted. You will also receive a VAT invoice, so that you will be able to deduct your local VAT, if you are a VAT registered business.

It is important to note that the EU’s VAT import system, is aimed towards regular business to consumer packages, with a value of up to €150. With the €150 being the value of the product before VAT, and without including the shipping fee. This rule, mainly because EU countries in addition to the VAT, charge a custom fee depending on product category, for shipments entering the EU, with a custom value above around €150. To avoid this issue, we will in such cases split your order into two or more orders. We will cover the additional shipping cost, that may incur from sending two or more packages.

The long version – As of July 1st. 2021 the European Union introduced a new One Stop VAT system, mandatory to follow for all EU member states. It is now no longer possible to mark a product as a gift, or send with a low fictive value, to remain under a given minimum threshold. For all products sold a private person, VAT should be paid in the country of the receiver. To avoid packages being stopped in custom, and expensive custom handling fees to be added, then the EU has made this One Stop VAT system.

This scheme allows for EU VAT registered companies, to become VAT agents. In our case, we work together with the Danish company e-trade Dynamics APS. On our behalf they will report and pay VAT, as per the receiver of the shipment. The system works in a way, whereas in this example a Danish company, can report and pay all EU VAT on a country per country basis to the Danish tax administration. Then the Danish tax administration, will then forward reportings and payments to the tax administration in the country where the package was delivered.

IMPORTANT INFORMATION REGARDING YOUR INVOICE: The VAT is calculated only of the product, and not the shipping cost. In short, product VAT is paid in buyer country. Shipping VAT is paid in the seller’s country. Example, you purchase a product that cost €100, to be sent to Germany. The German VAT is 19%, and the shipping cost is €13.95. The total cost will then be €100.00 (product), VAT or product €19.00, Shipping €13.95) = €132.95.

The UK

We are currently in the process of obtaining a UK import VAT license. Until our registration has been completed, unfortunately you should expect to pay VAT and a custom handling fee to Royal Mail, when receiving your shipment. The current Royal Mail handling fee is currently £8. Please note that in special cases, or if you choose the express delivery option at checkout, your package may be delivered by another company than Royal Mail, and the handling fee may differ.

Example: You purchase a product worth €100 from our website. The shipping cost is €13.95. In this case, you will pay €113.95 at checkout, with no VAT added. We will declare €100 on the package, since the shipping fee, is taxed when we ship the order. Then Royal Mail will change you VAT a conversion of €100 to £, plus a £8 handling fee. All in all, at current rates, just around £22. If you would like us to declare another value, please place a note in the comment box during checkout.

The US/Rest of World

First of all, if you are purchasing from outside the EU or the UK, then no VAT will be added to your order during check out.

While most countries have their own VAT rates, it is very rare that packages with a low custom value, is being stopped to go through a custom declaration process. We always mark shipments, in what from our experience, is the most beneficial custom friendly way for you as the buyer. If you have any comments, to how that you would like us to mark your shipment, you can leave these in the comment box during checkout.