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Import Tax: when added?
As a Belgian (EU) seller, I recently had an order to a Norwegian buyer.
The sum of all order items was 104.97 EUR + shipping cost 21.13 EUR, resulting in a total order of 126.10 EUR. This is listed as "Order Total Incl. Tax".
I didn't expect however the BrickOwl adjustment, where 25% Noweigan Import Tax was calculated on the total order value, which is basically paid by the seller (via BrickOwl Fee statement). See below for the exact message on the order.
Order Total Excl. Tax EUR 100,87
25% Tax EUR 25,23
25% Norweigan Import VAT has been paid on this order via the online marketplace Brick Owl Ltd as part of the VOEC scheme.
Until now, I operated under the impression that if any extra tax needs to be paid, it would be added to the total order value, to be paid by the buyer. So in this case, the 25% would 've been added to the total of 126.10 EUR, resulting in a new total of 157.63 EUR. This would be paid by the buyer (if he agrees of course). The payment of the extra import tax would be settled between BrickOwl and the seller via the fee system, just like today.
This is only a hobby for me, so I'm not hands deep into the tax regulation systems (and I am not really looking to start doing that). But I do want to avoid in the future being charged extra fees afterwards. Surprises like this basically leaves me with orders with no margin left.
1. What's your take on this?
2. Can I get an overview of other countries (like Norway) where an extra Tax will be charged to the seller (afterwards), so I can exclude those countries?
3. Is there a setting somewhere where extra taxes are charged to the buyer (before paying, so the buyer is informed beforehand of course).
4. Is it correct import taxes are calculated on the shipping fee as well?
Thank you for any valuable insights you might share with me.
(I posted this topic onder BrickOwl > Features, feel free to change to a more appropriate forum category if needed)
The sum of all order items was 104.97 EUR + shipping cost 21.13 EUR, resulting in a total order of 126.10 EUR. This is listed as "Order Total Incl. Tax".
I didn't expect however the BrickOwl adjustment, where 25% Noweigan Import Tax was calculated on the total order value, which is basically paid by the seller (via BrickOwl Fee statement). See below for the exact message on the order.
Order Total Excl. Tax EUR 100,87
25% Tax EUR 25,23
25% Norweigan Import VAT has been paid on this order via the online marketplace Brick Owl Ltd as part of the VOEC scheme.
Until now, I operated under the impression that if any extra tax needs to be paid, it would be added to the total order value, to be paid by the buyer. So in this case, the 25% would 've been added to the total of 126.10 EUR, resulting in a new total of 157.63 EUR. This would be paid by the buyer (if he agrees of course). The payment of the extra import tax would be settled between BrickOwl and the seller via the fee system, just like today.
This is only a hobby for me, so I'm not hands deep into the tax regulation systems (and I am not really looking to start doing that). But I do want to avoid in the future being charged extra fees afterwards. Surprises like this basically leaves me with orders with no margin left.
1. What's your take on this?
2. Can I get an overview of other countries (like Norway) where an extra Tax will be charged to the seller (afterwards), so I can exclude those countries?
3. Is there a setting somewhere where extra taxes are charged to the buyer (before paying, so the buyer is informed beforehand of course).
4. Is it correct import taxes are calculated on the shipping fee as well?
Thank you for any valuable insights you might share with me.
(I posted this topic onder BrickOwl > Features, feel free to change to a more appropriate forum category if needed)
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Comments
Please see exact snip on the order below (screenshot).
So I paid the 21.13 shipping, but had to pay the 25.23 TAX as well, leaving me a net revenue of 79.74 instead of 104.97
You're right that the customer pays this additional 25%, but it goes straight to BO who will pay on your behalf; you only see it so you know (and for shipping label purposes). You'll probably find the order breakdown has all the individual parts also including the 25%.
You won't be out of pocket (assuming your shipping methods are correctly set up), but I can see how it looks like it!
It's indeed more clear once the invoice is retrieved. In that case, it's clear the import tax has been added to the item(s) afterwards (or on top of the original asking price). I didn't notice this, as I don't learn my asking prices by heart