Do I have to pay Hungarian VAT extra or is the amount I pay when I order covered?
I would to order a 500usd product from the USA (New Jersey) to Hungary, European Union. When I go to the order page it says that I have to pay VAT 151usd. Does this 151 usd include the Hungarian/EU customs duty and the Hungarian 27% VAT or is it just some US tax and when the product arrives in Hungary, in the EU, I have to pay other taxes? If not included there is no way to avoid paying US taxes because after all that is not where the purchase is taking place.
18 comments
simply-the-best-for-you
·1 year agoI don't read minds either, as a mentor or not a mentor, so I didn't want to assume what you intended to say. But hey, what do I know? I find the OP's question to be quite specific & I'm glad they were able to get an answer, b/c it's not one I was certain of.
ETA: BTW, that is an interesting point about Hungary that I was not aware of. Thank you!
12345jamesstamps
·1 year agoOf all the countries with tariffs...for some reason which I don't want to get 'banned' so I can't say it...Hungary got no tariff as a country of the USA...
simply-the-best-for-you
·1 year agoHuh? Not sure what you're trying to say here. Hungary is not a "country of the USA". You're allowed to say Hungary & if this is about the Russia thing yet again, I'm sorry you got items pulled but we are 100% allowed to say Russia. But IDK what any of this has to do with OP's question?
12345jamesstamps
·1 year agoHungary was not one of the countries given a tariff tax like the rest of the world and most of Europe...by the current administration.
Instead of 'of' I guess it should have been 'from'...but I think most here would have figure that typo out...LOL
The OP question is somewhat vague...I can't actually read minds or do charades very well as I am not a mentor.
I think any response from anyone can be of help to the OP or any OP...in essence the OP makes their own decision and not that of anyone here.
martongasparducza
OP1 year agohttps://www.ebay.com/itm/297213162086?epid=25043036267&itmmeta=01JRRBT6KP9TPBQJW069N1MK2N&hash=item453348f266:g:WkEAAOSwYxxl8luA
picture from the check out: https://drive.google.com/file/d/1ACzZYPF2yNGoosK7UztqCYkdMKDa3prv/view?usp=sharing
lacemaker3
·1 year ago@martongasparducza, we can't view the picture on google drive because it asks for a password to log in. I assume that is your google account, and we can't access it.
On that listing, the price is $500 depending on what shipping option you choose. That is equivalent to about EUR 440. According to this eBay page about EU VAT for EU Buyers, eBay does NOT collect VAT if the total value is more than EUR 150. In that case, you have to pay the VAT to the shipping provider, in order to clear the package through customs. Also, if there are any tariffs on goods from the USA in Hungary, then you will have to pay those as well.
https://pages.ebay.com/vat-eu/
@wastingtime101, the listing is: https://www.ebay.com/itm/297213162086
wastingtime101
·1 year agoAs @lacemaker3 said, VAT is a separate issue from customs fees.
The info is there in the shipping details about customs fees @martongasparducza . If you select the prepay duties and fees option:
Take note of that last sentence:
lacemaker3
·1 year ago@wastingtime101, and @martongasparducza
I think the listing may be showing zero for VAT, because the price (approx. EUR 440 = US$ 500) it is over the limit for which eBay collects the VAT (up to EUR 150). https://pages.ebay.com/vat-eu/
That would mean that OP would have to pay the VAT when the package is delivered, no matter which option they choose. They may also have to pay duties and tariffs, if Hungary has tariffs on goods from the USA.
wastingtime101
·1 year agoAgree about the VAT, but duties/tariffs can be prepaid per above screenshots.
lacemaker3
·1 year ago@wastingtime101
On the other hand, it appears that eBay is charging VAT on that item with a delivery address in Hungary, at the correct rate for Hungary: 27% of the subtotal, $500 + $61.45 = $561.56 is $151.59, as martongasparducza reported. 🤔
@martongasparducza, your best chance to reduce your costs would be to choose the first option, and prepay the duties (zero) when you purchase:
wastingtime101
·1 year agoOK that makes sense - wondered about the OP mentioning the specific $151 amount, but then not able to access the screenshot I forgot about it.
I should have clicked the link you provided earlier. It's outdated (from 2021). I wondered why it was different from my experience (my buyers have been prepaying VAT on purchases over $150) but I've been working on inventory and was pretty focused on that.
Thanks for clearing it up.
The current policy page here does not list a $150 item cap for collecting VAT.
https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771
Items delivered to EU countries – Value Added Tax (VAT)
If the item is being shipped from outside the EU into an EU country, the buyer or recipient may need to pay VAT and customs duty.
As of 1 July 2021, eBay is required to collect VAT on certain orders delivered to EU addresses. For consignments where eBay does not collect taxes, or for orders above a certain value, buyers may need to pay additional import fees (e.g. VAT and duties) as part of clearing their parcel through customs, or when their order is delivered.
Learn more about how to request a VAT refund.
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I'll consolidate all the info for @martongasparducza :
1. Yes you are prepaying VAT.
2. If you choose the DDP option at checkout you will also prepay duties, customs fees.
3. The carrier / customs office can still charge you additional processing fees upon delivery.
4. If your country insists on charging you VAT even though it was prepaid, click the link above to learn how to get the amount paid through eBay refunded - it will require proof you paid VAT twice. This should not happen, but there are rare occasions where it does happen and I'm pre-informing you with the info needed to deal with it.
lacemaker3
·1 year ago@wastingtime101
As best as I can tell, your summary is correct.
This page does not mention any upper limit on the amount where eBay collects VAT, as you said:
(but I note that it is also dated 2021)
https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771
However, all of these pages do specifically state that eBay will not collect VAT on goods imported in the EU if the value of the purchase is over EUR 150:
https://pages.ebay.com/taxes/
https://pages.ebay.com/vat-eu/
https://www.ebay.co.uk/help/listings/default/vat-obligations-uk-eu?id=4650#section7
https://www.ebay.ie/help/listings/default/vat-obligations-uk-eu?id=4650#section4
I don't recall seeing the first of these before, but it is consistent with the second one, which I have seen before. This one has been updated recently, because IIRC, the upper limit for collecting VAT didn't apply for purchases being delivered in France, and that is not mentioned any more. The next two pages are for eBay UK and eBay Europe, and they do mention that there is no upper limit for collecting VAT for deliveries to France.
@devon@ebay, @kyle@ebay, @elizabeth@ebay
Can you please report that these pages need to be reviewed and corrected?
caldreamer
·1 year agoYou might get a better answer to your question if you posted on EBAY (European Union). Here in the United States we do not have VAT. With trade war between United States and EU it is hard to say what tariff the EU will "force you to pay for importing goods from the United States".
simply-the-best-for-you
·1 year ago@caldreamer We may be able to help b/c part of it has to do w/how the listing is set up & if EIS is used.
wastingtime101
·1 year agoProvide the item number or a screenshot @martongasparducza and @ tag me in the reply. I'll take a look.
simply-the-best-for-you
·1 year agoThe answer to your question may lie in whether or not the seller is using EIS shipping. Can you post a link to the item? If so, @wastingtime101 is kinda the expert at being able to tell, if it's possible.