I'm not an Italian resident. Why should i pay VAT ?
We have been asked why we apply 20% VAT on our orders, both for goods sent inside and outside EU We would like to avoid that, but unfortunately this is our fiscal requirement. As we are a officially registered Italian company, we have to obey legislative requirements.
We already investigated this issue several times, in order to see if we could avoid the addition of 20% VAT to orders coming outside Italy. This is the situation:
For EU customers VAT is not levied if recipient customer owns a regular VAT number, so if it is a commercial or production company. In this case, our web shop offers this opportunity, and customer can have VAT exemption using a valid VAT number filled in VAT field during customer registration process.
For private user, whom do not own a VAT number, we have no option and we have to add it.
For non EU customers VAT is not levied if orders are delivered by courier and they clear custom. Custom fee for flavoring materials is around 6% of invoice value and will be charged to recipient customer, (check this with local custom. Taric code for flavorings is 3302 10) .
Consider that courier might require additional costs for related paperwork.
We deliver with Fedex, so for those interested is possible to check with your local Fedex affiliate. For this type of order, Flavourart has the burden of proof with fiscal authorities that fees has been payed at destination, and we have to file all invoices and related custom documents. Private customer however will likely prefer to have small flavor orders delivered by regular and cheap mail. In this case, there is not the custom clearance, and the 20% VAT will be levied to the order. In practice, private non EU customers should evaluate the situation and decide if pay 20% VAT or clear local custom, and pay higher cost of courier delivered goods, considering that sometimes, depending of recipient country, custom clearance can be a complicated procedure.
For USA market, we are evaluating a partnership with a local reseller or distributor. This company will be able to purchase in bulk with a local re packaging, and will offer our products at a convenient price for US customers.
Local legislation that covers VAT and its application with foreign countries is: d.l. 30/08/1993 n° 331, art. 41, point B d.p.r. 633/1972 art 8, point A/B FlavourArt team
We already investigated this issue several times, in order to see if we could avoid the addition of 20% VAT to orders coming outside Italy. This is the situation:
For EU customers VAT is not levied if recipient customer owns a regular VAT number, so if it is a commercial or production company. In this case, our web shop offers this opportunity, and customer can have VAT exemption using a valid VAT number filled in VAT field during customer registration process.
For private user, whom do not own a VAT number, we have no option and we have to add it.
For non EU customers VAT is not levied if orders are delivered by courier and they clear custom. Custom fee for flavoring materials is around 6% of invoice value and will be charged to recipient customer, (check this with local custom. Taric code for flavorings is 3302 10) .
Consider that courier might require additional costs for related paperwork.
We deliver with Fedex, so for those interested is possible to check with your local Fedex affiliate. For this type of order, Flavourart has the burden of proof with fiscal authorities that fees has been payed at destination, and we have to file all invoices and related custom documents. Private customer however will likely prefer to have small flavor orders delivered by regular and cheap mail. In this case, there is not the custom clearance, and the 20% VAT will be levied to the order. In practice, private non EU customers should evaluate the situation and decide if pay 20% VAT or clear local custom, and pay higher cost of courier delivered goods, considering that sometimes, depending of recipient country, custom clearance can be a complicated procedure.
For USA market, we are evaluating a partnership with a local reseller or distributor. This company will be able to purchase in bulk with a local re packaging, and will offer our products at a convenient price for US customers.
Local legislation that covers VAT and its application with foreign countries is: d.l. 30/08/1993 n° 331, art. 41, point B d.p.r. 633/1972 art 8, point A/B FlavourArt team