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Thread: Time Factors purchases: is VAT deducted for non-EU purchases/deliveries?

  1. #51
    Grand Master snowman's Avatar
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    Let Eddie concentrate on getting the Voyager ready for sale!

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    Breitling Cosmonaute 809 - What's not to like?

  2. #52
    Master london lad's Avatar
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    For me the confusion arrises when Eddie says "there is no VAT on the prices on my website" There is of course VAT included 'in' the web site price.
    You pay Eddie £380, he pays £63.33 of that to the vat man. Obviously he is able to claim back any vat paid on his purchases.

    The price of the watch for a UK/EU resident is £316.67 plus vat = £380
    The price of the watch for a non UK/EU resident is £380 which includes no vat.

    A generous way for Eddie to move from being non vat registered to vat registered but a little confusing.

  3. #53
    Grand Master markrlondon's Avatar
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    Quote Originally Posted by london lad View Post
    For me the confusion arrises when Eddie says "there is no VAT on the prices on my website" There is of course VAT included 'in' the web site price.
    You pay Eddie £380, he pays £63.33 of that to the vat man.
    No, according to Eddie's earlier statement (taken as a whole) at http://forum.tz-uk.com/showthread.ph...=1#post2913674, that is not the case. From what Eddie has said, there really is no VAT included in the price on the website

    Thus the VAT on a sale of £380 is £380 x 20% = £76 and, from what he has said here, Eddie appears to be in effect subsidising this out of his own revenue. It appears to be never charged to the customer (and thus does not appear on customers' invoices as per my comments in http://forum.tz-uk.com/showthread.ph...=1#post2913862).

    Quote Originally Posted by london lad View Post
    The price of the watch for a UK/EU resident is £316.67 plus vat = £380
    The price of the watch for a non UK/EU resident is £380 which includes no vat.
    That would be differential pricing (i.e. different prices for customers in different regions) and Eddie has now made it quite clear that he is not doing that. Everyone pays the same price.

    What Eddie is doing is indeed very generous and is very, very unusual.
    Last edited by markrlondon; 1st November 2013 at 12:42. Reason: Fixed typo

  4. #54
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    Think about when the vat rate changed to 20%, a lot of retailers felt they couldn't charge the customer the extra vat, a lot of us took it on the chin to keep retail prices the same.
    But we still have to pay it to the vat man.

  5. #55
    Master london lad's Avatar
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    Quote Originally Posted by markrlondon View Post
    No, according to Eddie's earlier statement (taken as a whole) at http://forum.tz-uk.com/showthread.ph...=1#post2913674, that is not the case. From what Eddie has said, there really is no VAT included in the price on the website

    Thus the VAT on a sale of £380 is £380 x 20% = £76 and, from what he has said here, Eddie appears to be in effect subsidising this out of his own revenue. It appears to be never charged to the customer (and thus does not appear on customers' invoices as per my comments in http://forum.tz-uk.com/showthread.ph...=1#post2913862).



    That would be differential pricing (i.e. different prices for customers in different regions) and Eddie has now made it quite clear that he is not doing that. Everyone pays the same price.

    What Eddie is doing is indeed very generous and is very, very unusual.
    I don't think that is the case as Eddies is not mad, he wouldn't pay over £76 when he only needs to pay over £63 surely!

    As for diferential pricing, I think Eddies view is both customers pay £380 ??

    I dont understand what he is doing (and thats after he PM'ed me an explanation!) but as long as he is happy and customers are happy :-)

  6. #56
    Grand Master markrlondon's Avatar
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    Quote Originally Posted by london lad View Post
    I don't think that is the case as Eddies is not mad, he wouldn't pay over £76 when he only needs to pay over £63 surely!
    I am only going by Eddie's statements on the matter, both today and previously when this has been raised. It seems to me that his statement at http://forum.tz-uk.com/showthread.ph...=1#post2913674 is quite clear.

    Personally I think, as I said, that it is a very, very unusual approach and a very generous one but not mad.

    Quote Originally Posted by london lad View Post
    As for diferential pricing, I think Eddies view is both customers pay £380 ??
    That is correct: There is no differential pricing. Everyone really does pays the same for everything. If what Eddie said in his statement earlier is correct (and I have no reason to think he is lying!) and if I understand it correctly, non-EU customers do not pay any 'extra' in place of tax they should not be paying. Non-EU customers are not subsidising anyone. There really is no VAT included in or added into the prices on the website.
    Last edited by markrlondon; 1st November 2013 at 14:01.

  7. #57
    Quote Originally Posted by markrlondon View Post
    That is correct: There is no differential pricing. Everyone really does pays the same for everything. If what Eddie said in his statement earlier is correct (and I have no reason to think he is lying!) and if I understand it correctly, non-EU customers do not pay any 'extra' in place of tax they should not be paying. Non-EU customers are not subsidising anyone. There really is no VAT included in or added into the prices on the website.
    If Eddie is paying VAT on UK/EU sales, then he must surely be making less profit on UK/EU sales than non-UK/EU. An obvious conclusion is that the overseas customers are effectively subsidising the watches sold within the EU. However, Eddie may simply view his VAT bill as being spread evenly over all sales regardless of their destination, and as long as HMRC as happy, then it's really only an issue of how he then presents that to the overseas customer in a way which appears reasonably transparent.

    The bottom line though is much the same as that faced by UK/EU customers buying, say, a MkII watch from Bill Yao. His prices are net of US sales tax (with Pennsylvania state residents subject to sales tax at a rate of 6.0%) but as sales tax in the US is generally so low by European standards, customers over here do pay considerably more for his watches than a customer in the US. The nuances of Eddie's tax arrangements might then seem of academic interest given the relatively small margins he appears to make on his watches by industry standards.

    Martin

  8. #58
    Master london lad's Avatar
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    Quote Originally Posted by markrlondon View Post
    I am only going by Eddie's statements on the matter, both today and previously when this has been raised. It seems to me that his statement at http://forum.tz-uk.com/showthread.ph...=1#post2913674 is quite clear.

    Personally I think, as I said, that it is a very, very unusual approach and a very generous one but not mad.



    That is correct: There is no differential pricing. Everyone really does pays the same for everything. If what Eddie said in his statement earlier is correct (and I have no reason to think he is lying!) and if I understand it correctly, non-EU customers do not pay any 'extra' in place of tax they should not be paying. Non-EU customers are not subsidising anyone. There really is no VAT included in or added into the prices on the website.
    Except technically, if E is vat registered, there is really :-)

  9. #59
    Grand Master markrlondon's Avatar
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    Quote Originally Posted by london lad View Post
    Quote Originally Posted by markrlondon View Post
    That is correct: There is no differential pricing. Everyone really does pays the same for everything. If what Eddie said in his statement earlier is correct (and I have no reason to think he is lying!) and if I understand it correctly, non-EU customers do not pay any 'extra' in place of tax they should not be paying. Non-EU customers are not subsidising anyone. There really is no VAT included in or added into the prices on the website.
    Except technically, if E is vat registered, there is really :-)
    No. Normally that would be the case but if Eddie is effectively paying (or subsidising, to use a different word) what would normally be the VAT that the customer would usually pay, as appears to be the case from what he has said, then there really is no VAT included in or added into the prices on the website. Yes, Eddie is VAT registered and must account for VAT on the prices of items he sells to UK and EU customers (and pay this to HMRC) but it would seem that there is no requirement for him actually charge that VAT to those customers. As he says, "nobody is subsidising anyone except [him]".
    Last edited by markrlondon; 1st November 2013 at 15:07.

  10. #60
    Quote Originally Posted by markrlondon View Post
    All the tax that should be paid is being paid, no one (either UK/EU or non-EU) is paying more than they should for one of Eddie's watches, everyone (both UK/EU and non-EU is paying the same, and everyone is happy (or should be!).
    No, not everyone is paying the same.

    Everyone is paying the same to Eddie.

    Non EU may also be paying local tax.

  11. #61
    Grand Master markrlondon's Avatar
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    Quote Originally Posted by MartinCRC View Post
    However, Eddie may simply view his VAT bill as being spread evenly over all sales regardless of their destination, and as long as HMRC as happy, then it's really only an issue of how he then presents that to the overseas customer in a way which appears reasonably transparent.
    And the way he presents it is transparent in my opinion: From what Eddie has said there is no differential pricing, everyone pays the same, and non-EU customers really are paying the VAT-exclusive price just as they would from any other UK/EU supplier.

    The reason for the confusion seems to me to be nothing to do with lack of transparency and more to do with Eddie's method being both unusual and generous.

    Quote Originally Posted by MartinCRC View Post
    The nuances of Eddie's tax arrangements might then seem of academic interest given the relatively small margins he appears to make on his watches by industry standards.
    Indeed.

  12. #62
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    Quote Originally Posted by Kingstepper View Post
    No, not everyone is paying the same.

    Everyone is paying the same to Eddie.

    Non EU may also be paying local tax.
    Sure, but what non-EU people pay to their local tax jurisdictions is outwith Eddie's control and outwith the context of this discussion. The key points within the context of this discussion are what people pay to Eddie and that he does not, in fact, appear to charge non-EU customers a higher price than they should be paying. I.e. Non-EU customers do in fact pay (to Eddie) the VAT-exclusive price, exactly as they should.

  13. #63
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    Quote Originally Posted by markrlondon View Post
    No. Normally that would be the case but if Eddie is effectively paying (or subsidising, to use a different word) what would normally be the VAT that the customer would usually pay, as appears to be the case from what he has said, then there really is no VAT included in or added into the prices on the website. Yes, Eddie is VAT registered and must account for VAT on the prices of items he sells to UK and EU customers (and pay this to HMRC) but it would seem that there is no requirement for him actually charge that VAT to those customers. As he says, "nobody is subsidising anyone except [him]".
    I cant see that. If the sale price of £380 dosent include any vat (which I don't think technically can happen) then Eddie is effectively raising an invoice for £380 + vat at 20% and paying over £76 to the vat man. The customer parts with £380 and the £76 comes from Eddies revenue.

    However if he simply says the £380 includes vat then he only has to pay over £63 and the customer still pays £380. Why on earth would he do it the first way, no one gains except the vat man.

  14. #64
    Quote Originally Posted by markrlondon View Post
    Sure, but what non-EU people pay to their local tax jurisdictions is outwith Eddie's control and outwith the context of this discussion. The key points within the context of this discussion are what people pay to Eddie and that he does not, in fact, appear to charge non-EU customers a higher price than they should be paying. I.e. Non-EU customers do in fact pay (to Eddie) the VAT-exclusive price, exactly as they should.
    Sure, but I can also see that a non-EU buyer might think that the business is subsidising EU buyers at his expense (as some have commented along those lines earlier). But obviously, is Eddies business and up to him what he does.

    On the other hand, if I buy a watch from Japan, say, I pay the same (as far as I know) as a Japanese resident.

  15. #65
    Administrator swanbourne's Avatar
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    ^^^ I explained how the situation originally arose. When the PRS-1 was £195 I had to register for VAT before they were all sold. I think that VAT was 15% at the time and I should have increased the price to £225. It didn't seem right to me that some customers paid £195 and others would have to pay £225 so I ate the VAT. You need to understand that the watches were already in stock so there seemed to be no justification for raising the price. I've continued with this arrangement ever since.

    If I were to regularise the situation now, all that would happen is that VAT would be added to my advertised prices for EU residents and the price would remain the same for non-EU customers. In view of some of the convoluted arguments put forward and the negative feelings this arrangement has caused, it's most likely that I'll make these changes and then I'll bge able to deduct VAT for non-EU customers.

    It seems a bit of a pointless exercise to me but if adding VAT on just to take it off again without any change in the price paid makes people happy, then I suppose that's what must be done.

    Eddie
    Whole chunks of my life come under the heading "it seemed like a good idea at the time".

  16. #66
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  17. #67
    Quote Originally Posted by Kingstepper View Post
    On the other hand, if I buy a watch from Japan, say, I pay the same (as far as I know) as a Japanese resident.
    Sales Tax ( "VAT" ) in Japan is currently 5% and tourists or non-residents don't need to pay it. For what it's worth, I'm a resident of Japan and when I buy something from Timefactors, I pay the price listed on the website, then customs and Japanese sales tax on top when it arrives here. There are other EU retailers who remove the VAT from their prices when I buy from them as a non-EU resident.

    Paul

  18. #68
    Grand Master markrlondon's Avatar
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    Quote Originally Posted by london lad View Post
    I cant see that.
    <shrug> As I said, I am only going on what Eddie actually said and on the evidence of the invoice sent to me.

  19. #69
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    Quote Originally Posted by Tokyo Tokei View Post
    There are other EU retailers who remove the VAT from their prices when I buy from them as a non-EU resident.
    Eddie has made it very clear that you as a non-EU resident are not paying any VAT and nor are you paying any extra. You are the paying the same exclusive VAT rate that you'd pay from any EU vendor.
    Last edited by markrlondon; 1st November 2013 at 15:52.

  20. #70
    Grand Master markrlondon's Avatar
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    Quote Originally Posted by swanbourne View Post
    If I were to regularise the situation now, all that would happen is that VAT would be added to my advertised prices for EU residents and the price would remain the same for non-EU customers. In view of some of the convoluted arguments put forward and the negative feelings this arrangement has caused, it's most likely that I'll make these changes and then I'll bge able to deduct VAT for non-EU customers.

    It seems a bit of a pointless exercise to me but if adding VAT on just to take it off again without any change in the price paid makes people happy, then I suppose that's what must be done.
    Please do leave it as it is. It works fine.

  21. #71
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    Quote Originally Posted by swanbourne View Post
    ^^^ I explained how the situation originally arose. When the PRS-1 was £195 I had to register for VAT before they were all sold. I think that VAT was 15% at the time and I should have increased the price to £225. It didn't seem right to me that some customers paid £195 and others would have to pay £225 so I ate the VAT. You need to understand that the watches were already in stock so there seemed to be no justification for raising the price. I've continued with this arrangement ever since.

    If I were to regularise the situation now, all that would happen is that VAT would be added to my advertised prices for EU residents and the price would remain the same for non-EU customers. In view of some of the convoluted arguments put forward and the negative feelings this arrangement has caused, it's most likely that I'll make these changes and then I'll bge able to deduct VAT for non-EU customers.

    It seems a bit of a pointless exercise to me but if adding VAT on just to take it off again without any change in the price paid makes people happy, then I suppose that's what must be done.

    Eddie
    OK I've got it now!
    Your advertised prices are vat inclusive but you never raised your prices to account for the vat when you registered so effectively you discounted your prices to keep the actual amount an EU customer pays the same as it was before you registered.

  22. #72
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    Another way of looking at it is that Eddie sees VAT as another form of "income" tax which he doesn't expect anyone else but himself to pay.

    It's quite straightforward really, none of us pay VAT on Eddies watches.

    Any VAT due is paid by Eddie. It is an extraordinary situation and a very generous one on Eddie's part.

    What is the norm in UK/EU and what other retailers do is of no relevance in this discussion.

  23. #73
    Quote Originally Posted by markrlondon View Post
    Eddie has made it very clear that you as a non-EU resident are not paying any VAT and nor are you paying any extra. You are the paying the same exclusive VAT rate that you'd pay from any EU vendor.
    Bit harsh Mark. I was merely clarifying the previous poster's comments about buying from Japan for a non-resident. Most vendors with an international market have to deal with different taxation requirements. I make no comment about how Eddie chooses to price, or whether it's confusing or not to non-EU buyers. I pointed out how it works in Japan, and my ( entirely common ) experience with other EU vendors. Didn't really deserve a defensive lecture. If I like Eddie's stuff at the price it costs me, I buy it. How he deals with tax is not my issue.

    Paul

  24. #74
    Grand Master Dave+63's Avatar
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    Quote Originally Posted by london lad View Post
    OK I've got it now!
    Your advertised prices are vat inclusive but you never raised your prices to account for the vat when you registered so effectively you discounted your prices to keep the actual amount an EU customer pays the same as it was before you registered.
    No, you haven't got it!

    The prices are VAT EXCLUSIVE!!!

    Eddie pays the VAT on top. How unusual or "mad" this May seem to you, it's how Eddie does it.

  25. #75
    Grand Master markrlondon's Avatar
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    Quote Originally Posted by Dave+63 View Post
    Another way of looking at it is that Eddie sees VAT as another form of "income" tax which he doesn't expect anyone else but himself to pay.

    It's quite straightforward really, none of us pay VAT on Eddies watches.

    Any VAT due is paid by Eddie. It is an extraordinary situation and a very generous one on Eddie's part.
    This is it. Exactly.

    It's an unusual approach but a perfectly legal and proper one (the full tax due still gets paid to HMRC) and it is, as you say, very generous indeed of Eddie.

    It means that non-EU customers really are paying the VAT-exclusive rate, just as they would pay from any other EU vendor.

  26. #76
    Grand Master markrlondon's Avatar
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    Quote Originally Posted by Tokyo Tokei View Post
    Bit harsh Mark.
    Sorry, didn't mean to seem harsh. I think we might have been speaking at cross purposes from what you've now said so, once again, apologies.

    By the way, can you PM me or email me on another matter? markr@signal100.com

  27. #77
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    Quote Originally Posted by Dave+63 View Post
    No, you haven't got it!

    The prices are VAT EXCLUSIVE!!!

    Eddie pays the VAT on top. How unusual or "mad" this May seem to you, it's how Eddie does it.
    If you are vat registered and you sell things the price you sell at includes vat, however the vendor structures the whole deal will not change that.
    Anyway my curiosity is satisfied so I'm out of here :-)

  28. #78
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    Quote Originally Posted by london lad View Post
    If you are vat registered and you sell things the price you sell at includes vat
    Usually yes (when a UK business sells to UK customers or to EU consumers) but it doesn't actually have to be this way. As long as the VAT gets paid, it doesn't matter who pays it. It does not absolutely have to be the customer who pays it, even though this is the normal way it happens. The vendor really can restructure things to change who pays it. Eddie has generously decided to restructure things and do it the 'not-normal' way.

  29. #79
    Administrator swanbourne's Avatar
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    Quote Originally Posted by london lad View Post
    If you are vat registered and you sell things the price you sell at includes vat, however the vendor structures the whole deal will not change that.
    Anyway my curiosity is satisfied so I'm out of here :-)
    It's quite common for retailers to have offers where they say "Buy in the next X weeks and we'll pay the VAT".

    Eddie
    Whole chunks of my life come under the heading "it seemed like a good idea at the time".

  30. #80
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    Quote Originally Posted by london lad View Post
    If you are vat registered and you sell things the price you sell at includes vat, however the vendor structures the whole deal will not change that.
    Anyway my curiosity is satisfied so I'm out of here :-)
    If you want to be pedantic then yes, every cost is included in the sale price and what's left is profit.

    However, Eddie chooses to pay the VAT out of his profits rather than charge the customer. Where there is no VAT to be paid ie non EU then he doesn't pay any.

  31. #81
    Quote Originally Posted by markrlondon View Post
    Usually yes (when a UK business sells to UK customers or to EU consumers) but it doesn't actually have to be this way. As long as the VAT gets paid, it doesn't matter who pays it. It does not absolutely have to be the customer who pays it, even though this is the normal way it happens. The vendor really can restructure things to change who pays it. Eddie has generously decided to restructure things and do it the 'not-normal' way.
    There's a benefit in doing it this way. If the prices included VAT he'd knock this off for foreign customers which he currently doesn't have to do. So the business is 'up' on those sales.

  32. #82
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    Quote Originally Posted by Kingstepper View Post
    There's a benefit in doing it this way. If the prices included VAT he'd knock this off for foreign customers which he currently doesn't have to do. So the business is 'up' on those sales.
    No. The price is already "knocked off" for non-EU customers, exactly as it should be. Non-EU customers should pay the VAT-exclusive price and that is exactly what they are paying already, as things stand. He does have to do it ("knock off" the VAT for non-EU customers) as things stand and he in fact does. It can't get lower for non-EU customers, no matter what else Eddie does. Non-EU customers are already paying the identical VAT-exclusive rate that they would pay from any EU vendor. Non-EU customers are already paying the identical VAT-exclusive price that they would pay even if Eddie changed the VAT treatment for UK/EU customers.
    Last edited by markrlondon; 1st November 2013 at 17:18. Reason: Fixed typos, added clarifying text

  33. #83
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    Quote Originally Posted by Dave+63 View Post
    If you want to be pedantic then yes, every cost is included in the sale price and what's left is profit.

    However, Eddie chooses to pay the VAT out of his profits rather than charge the customer. Where there is no VAT to be paid ie non EU then he doesn't pay any.
    My point exactly but he is charging the customer as the money he uses to pay the vat man comes from the customer in the first place.
    Last edited by london lad; 1st November 2013 at 18:00.

  34. #84
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    Quote Originally Posted by swanbourne View Post
    It's quite common for retailers to have offers where they say "Buy in the next X weeks and we'll pay the VAT".

    Eddie
    Agreed but in reality the vat is still collected from the customer and paid to the revenue, the retailer is simply discounting his selling price by an amount equivalent to the vat. The gross retail price still contains the vat element.

  35. #85
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    Quote Originally Posted by markrlondon View Post
    However, as Eddie said very clearly, the prices shown on the Timefactors website do not include VAT.
    They might not, but as far as i can see nothing Eddie has said would be inconsistent with him exercising a discretionary right to discount the list price paid by EU customers at the point of sale. Indeed that's one reading of what happened with the PRS-1.

    I think it would be in everyone's interest if he did this. It improves his margins over the convoluted price plus VAT arrangement, offers the potential to reduce the price everyone pays and as such is a better deal for us all.

    Timefactors watches have one price across the world, thats good. There's no opportunity for a grey market to develop and watches crossing a tariff barrier at significant cost will have their resale value in that market inflated by the import cost. Who loses?
    Last edited by raysablade; 1st November 2013 at 18:49.

  36. #86
    Does this really justify this much discussion? Honestly, it seems like we're trying to get an accountant's analysis of pricing just so a few purchasers can be sure they're squeezing every penny they can.

    Price is listed on the site. If you like the watch, buy it at that price. If not, move on.

    Whatever you decide, be happy that Eddie is generous enough to pay the extra bit for you EU folks. Remember: those of us not in the EU must additionally endure brokerage, customs, and our own VATs which often more than make up for any VAT deductions.

  37. #87
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    Quote Originally Posted by london lad View Post
    Agreed but in reality the vat is still collected from the customer and paid to the revenue, the retailer is simply discounting his selling price by an amount equivalent to the vat. The gross retail price still contains the vat element.
    ^ This. A local hardware shop to me does VAT free days but if you buy something there is still a VAT element in the total price paid.

  38. #88
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    Quote Originally Posted by Dean in Canuckistan View Post
    Does this really justify this much discussion? Honestly, it seems like we're trying to get an accountant's analysis of pricing just so a few purchasers can be sure they're squeezing every penny they can.

    Price is listed on the site. If you like the watch, buy it at that price. If not, move on.

    Whatever you decide, be happy that Eddie is generous enough to pay the extra bit for you EU folks. Remember: those of us not in the EU must additionally endure brokerage, customs, and our own VATs which often more than make up for any VAT deductions.
    Agreed, this is a bit ridiculous. Pay what you see, applies to all. Don't like the price - buy something else.

    This forum is not alone though - seen a related argument running on another forum about annual/regular sales and prices.

    Same answer there as here.

  39. #89
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    First para may help but I may be wrong.


  40. #90
    Grand Master markrlondon's Avatar
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    Quote Originally Posted by teadazed View Post
    Agreed, this is a bit ridiculous. Pay what you see, applies to all. Don't like the price - buy something else.
    This.

    The questions that began this thread (and which have been answered by Eddie) were (paraphrasing):

    a) Are non-EU customers paying the VAT-exclusive rate (as they would from any other EU vendor)? The answer is yes, they are paying the VAT-exclusive rate just as they would from any other EU vendor.

    b) Are non-EU customers paying 'extra' in some way? The answer is no, they do not pay any extra. As Eddie has said, there really is no VAT included in the prices quoted on the website so the price can't get any lower for non-EU customers.


    Beyond that, I really don't think that Eddie needs advice on how to structure his business model. Everyone who has owned one of his watches (whether bought directly from him or bought second hand) has directly or indirectly benefited from Eddie's remarkably fair pricing and demonstrably successful business model, a model that has been successful over the long term (and which must have survived a number of VAT inspections over the years!). I think Eddie's watches offer unusually good value for money.

    In short, recognise when you're getting a good thing and stop complaining about it.
    Last edited by markrlondon; 2nd November 2013 at 06:44.

  41. #91
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    I just came across this thread as I was looking at Eddie's watches and thinking of buying one.

    In summary, as I understand it:
    The prices on the website apply to EU and non-EU customers.
    Eddie pays VAT to HMRC on EU customers, which he has to do by law.
    For non-EU, no VAT paid, hence extra profit to Eddie.

    I went to order about $500 of clothes from M&S last year, but when I realised they had the same policy as Eddie, I closed my browser. Now, M&S is a big company so I expect them to do what other big companies do: not price gouge me because I live outside the EU.

    Eddie isn't a M&S, so I'm not surprised that he keeps things easy for himself. However, I would find it a lot easier to buy one of his watches if I wasn't paying the same price as EU customers.

    In Australia we are fortunate, not just because it has been 30C today in Melbourne, but we can import goods up to $1000 without paying duty. I feel sorry to those of you who get stung by import taxes as well.

    Big question is if non-EU prices were less, would Eddie make more profit? It's Eddie's business and his decision. M&S have decided not to reduce and I assume the profit motive drove their decision. My wife has just been perusing the Next website. Anything over $30 is free delivery. Their import business in Australia warrants a local distribution centre. I'll have to check whether the prices are different, not that I'm brave enough to suggest to my wife not to shop with them!

  42. #92
    Master adzman808's Avatar
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    Quote Originally Posted by wadebridge59 View Post
    Big question is if non-EU prices were less, would Eddie make more profit?
    No.

    If I understand correctly.....

    No VAT is paid on export goods, so TFs can keep 100% of a export sale (minus corporation tax which in turn is minus company overheads)

    If he makes the price lower for export sales, then the profit margin is also lower

    This thread reminds me why my accountant is worth his money & I just let him deal with all this BS, I wonder if Eddie does the same? :)

  43. #93
    Quote Originally Posted by wadebridge59 View Post
    Big question is if non-EU prices were less, would Eddie make more profit? It's Eddie's business and his decision. M&S have decided not to reduce and I assume the profit motive drove their decision. My wife has just been perusing the Next website. Anything over $30 is free delivery. Their import business in Australia warrants a local distribution centre. I'll have to check whether the prices are different, not that I'm brave enough to suggest to my wife not to shop with them!
    Quote Originally Posted by adzman808 View Post
    No.

    If I understand correctly.....

    No VAT is paid on export goods, so TFs can keep 100% of a export sale (minus corporation tax which in turn is minus company overheads)

    If he makes the price lower for export sales, then the profit margin is also lower

    This thread reminds me why my accountant is worth his money & I just let him deal with all this BS, I wonder if Eddie does the same? :)
    We don't know - he might sell more watches if prices were lower.

  44. #94
    Administrator swanbourne's Avatar
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    It's really very simple: if overseas buyers want VAT deducting then I apply VAT to my existing prices for EU sales and overseas buyers pay the existing price plus VAT, minus VAT. Looks to me like the price would stay the same for overseas buyers and increase for EU buyers. If that's what customers want then who am I to argue.

    Eddie
    Whole chunks of my life come under the heading "it seemed like a good idea at the time".

  45. #95
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    Quote Originally Posted by wadebridge59 View Post
    ... However, I would find it a lot easier to buy one of his watches if I wasn't paying the same price as EU customers.
    ...
    It's very simple. Pay what you see. If you don't like the price - jog on.
    The rest of us are happy with the way things are.

  46. #96
    Master adzman808's Avatar
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    Quote Originally Posted by swanbourne View Post
    It's really very simple: if overseas buyers want VAT deducting then I apply VAT to my existing prices for EU sales and overseas buyers pay the existing price plus VAT, minus VAT. Looks to me like the price would stay the same for overseas buyers and increase for EU buyers. If that's what customers want then who am I to argue.

    Eddie
    Eddie,

    I sincerely hope I speak for everybody when I say:

    Please don't put all your prices up by 20%

    Thanks and regards
    People who buy your watches

  47. #97
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    Quote Originally Posted by adzman808 View Post
    Eddie,

    I sincerely hope I speak for everybody when I say:

    Please don't put all your prices up by 20%

    Thanks and regards
    People who buy your watches
    I'm fairly sure that won't happen.

  48. #98
    I'm absolutely gobsmacked by some of the whinging on here from people outside of the EU. Eddie explained perfectly well how it works (to your advantage as well as ours). You'd think, having lived with VAT for some decades now, that we'd have an idea of how it works. Sometimes, being in the EU has its benefits (believe it or not).

    It's your choice whether to buy one of Eddie's in the same way it's my choice whether to buy from Dion at Magrette or Bill at MkII.

    Whilst we're on the subject, let's address all the bloody americans who continually post CONUS ONLY on other watch forums because they're too lazy to queue at the Post Office, something we have to put up with.

    Rant over.
    Last edited by messym; 26th December 2013 at 21:46.

  49. #99
    Quote Originally Posted by messym View Post
    I'm

    Whilst we're on the subject, let's address all the bloody americans who continually post CONUS ONLY on other watch forums because they're too lazy to queue at the Post Office, something we have to put up with.

    Rant over.
    Don't understand this rant. Are CONUS ONLY sent w/o queuing at the Post Office?

  50. #100
    On the few occasions I frequented another forum, I saw a few really nice watches that I'd been looking for, including one of Eddie's, only to be told "I only post to CONUS"

    After the 3rd occasion, I asked why and was told that if they posted within CONUS, the watch would be collected and if sending overseas, they had to queue at a Post Office to complete a customs declaration (like we seem to have do now). Posting within CONUS meant less hassle...

    That's why I mentioned it.

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