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Locpilot

I'm New Here
Hi guys,

Does anyone outside of the US have this same problem?…. :

We bought our MT prop in the package deal from Vans a year ago. The engine has now finally shipped but there is a problem with the prop. MT will only release the Prop if VAT is payed as Vans is a US company. So far so good…. However, Vans will n o t supply us with the invoice that includes the payed VAT. The prop will be sent straight from Germany to another country within Europe (both in the EU). If we don’t receive an invoice that includes VAT we will have to pay VAT for a second time……… Anyone with a solution?

Thanks in anticipation, Locpilot.
 
Are you not able to claim back the VAT content of the invoice on export from America? This is to say... you DO pay the VAT but you then reclaim it afterwards.

I would have thought there should be a process whereby the "export" of the product can be demonstrated (or in this case the lack of import or export) and the tax content reclaimed, since this is how every other country in the world works. I imagine it might be a bit of a nightmare of forms - signed in triplicate knowing America - however it should be possible. It might take some time to have this claim processed though.

Yes? No?
 
Locpilot said:
Hi guys,

Does anyone outside of the US have this same problem?…. :

We bought our MT prop in the package deal from Vans a year ago. The engine has now finally shipped but there is a problem with the prop. MT will only release the Prop if VAT is payed as Vans is a US company. So far so good…. However, Vans will n o t supply us with the invoice that includes the payed VAT. The prop will be sent straight from Germany to another country within Europe (both in the EU). If we don’t receive an invoice that includes VAT we will have to pay VAT for a second time……… Anyone with a solution?

Thanks in anticipation, Locpilot.
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What makes you think you have paid the VAT already?
The Vans price excludes VAT.
 
planenutz said:
Are you not able to claim back the VAT content of the invoice on export from America? This is to say... you DO pay the VAT but you then reclaim it afterwards.

I would have thought there should be a process whereby the "export" of the product can be demonstrated (or in this case the lack of import or export) and the tax content reclaimed, since this is how every other country in the world works. I imagine it might be a bit of a nightmare of forms - signed in triplicate knowing America - however it should be possible. It might take some time to have this claim processed though.

Yes? No?
Click to expand...
Thanks for your reply Mike. I’m not up to date on that. I guess that’s why I asked if someone had had the same problem and knew a solution.
 
I would be surprised if MT charged Van's VAT since they are not in DE or the EU. Even when they send stuff to Switzerland, they don't charge VAT. I'm guessing the price that you paid Van's does not include VAT, so when the prop is sent from MT in DE to you in NL, you'll be paying VAT for the first and only time.
 
rv8ch said:
I would be surprised if MT charged Van's VAT since they are not in DE or the EU. Even when they send stuff to Switzerland, they don't charge VAT. I'm guessing the price that you paid Van's does not include VAT, so when the prop is sent from MT in DE to you in NL, you'll be paying VAT for the first and only time.
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Yes - good point, I didn't think of that.

Locpilot - Most countries I have dealt with down here only charge VAT to local purchases. If an item is exported then VAT is typically invoiced then claimed back, however this can depend upon trade agreements between various countries. If you've travelled internationally you will have seen Tax Refund booths at airports after you have gone through Immigration where you can produce recipts for the goods you have purchased in-country and have the VAT/GST refunded - as long as you can prove export. Because you have cleared Immigration you have officially left the country so this is why they ask you to show the officers the goods you have purchased at that point. A similar thing happens when exporting bulky items via frieght handlers. So as rv8ch stated above, Vans will have almost certainly not paid VAT on the prop on export to USA. That said, there could well be US tariffs on the MT prop as a protection mechanisum towards US prop manufacturers. By taxing the international competition the government is providing an incentive for US citizens to use US-manufactured goods. You could ask Vans about this, and whether or not this can be refunded on export to Europe (if it has been added).
 
Locpilot said:
Hi jonny, thank you for your input. I’ll have to get to the bottom of this…..was hoping for someone to offer a solution.
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The solution is to pay the VAT in the country of delivery, and then show the receipt to MT.
I’m not sure why you think you have paid the VAT to Vans. They don’t get involved in VAT collection for European counties.
 
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