What is VAT and how does it work
The Value Added Tax, or VAT, in the European Union is a general, broadly based consumption tax assessed on the value added to goods and services. It applies more or less to all goods and services that are bought and sold for use or consumption in the European Union.
When you buy on Gearwise VAT is applied or not applied depending on several different cases. As Gearwise is based in Sweden, the VAT rate we apply is 25%, if a product costs 100 excluding VAT the price will be 125 including VAT.
We will always check against the VIES database if an EU VAT number is valid or not.
1a. If the shipping destination is outside the EU, no VAT is applied. All taxes and duties are due in the receiving end.
1b. If a buyer is located outside the EU and the shipping destination is inside the EU, VAT will be applied. The VAT can be refunded when crossing the border from the EU or the buyers shipper can issue the necessary export documents.
2a. If a buyer is located inside the EU and the purchase is done as a private person, Swedish VAT is applied to the order.
2b. If a buyer is a company located inside the EU without a valid EU VAT number, Swedish VAT is applied to the order.
2c. If the shipping destination is inside Sweden, VAT is applied in all cases except when a freight company can certify that the destination is outside the EU. Also, the VAT can be refunded when crossing the border from the EU.
3. If a buyer is located inside the EU and is a company with a valid VAT number, no VAT is applied to the order. However, if the goods is imported from outside the EU the buyer may have to pay VAT and duties at arrival of the goods.
Please note that from 01-01-2021 the UK is no longer part of the EU and a buyer in the UK must pay VAT and possible duties when importing goods.
- For UK customers with a valid VAT number, we will invoice without VAT.
- For UK customers without VAT number, we will charge UK VAT (20%)
- Gearwise UK VAT number is 372745673
Value added tax is named different depending on country, but it is the same thing:
VAT – Mwst. – Ust. – BTW – TVA – DPH – PDV – moms – km – ALV – ÁFA – CBL – IVA – PVM – PVN – PTU