- Posts: 55
- Joined: Fri Sep 07, 2012 7:27 am
nivou wrote:My Mediterranean friend, don't blame the VAT, we have a 23% here but the price is not justified by the VAT differences between EU countries. For example pick an online store wherever you like in EU, see the price ex. VAT and put your country's VAT. That's not the case. For example in UK, which is an EU member (for now), the price excluding VAT is 1,790 pounds and if we put your VAT is 2,165.90 pounds and in euros that's around 2,520 so as you can see, VAT is not the issue, but the premium they putting. Total unfair and unprofessional.
Each EU country has it's own Import Duties and Excise. That is the TAX added to goods imported from outside the EU. This is added before VAT is added. This is not controlled by the EU but by each country. The each country has it's own distribution channels that add mark-ups.
In the UK there is higher turn over of goods than in many of the other countries in the EU and so the mark-up on goods can be more competitive as they sell more and profit margin can be smaller.