What exactly is Prepaid tax?

[FlyingPower]

I know many manufactures offers this option and it is usually not much more than just shipping. Oftentimes it is 110 shipping and 160 shipping and "no tax". NOW, I live in Sweden and here we have 25% VAT, I am not the best at math but I know that 50 bucks isn't 25% on something which adds up to 500-600 dollars. Soo what exactly is prepaid, I want to know what exact legislature they are depending on when the offer this. I have asked every seller if the "have a warehouse in Europe", I don't want to ask them right up if the just pick the best country and pay taxes there (not sure this works if you are being strict with the law but let's assume it does).

Incoterms is the only suggestion I have heard.

[carbonazza]

You are torturing yourself too much about this.
Use this option when offered, you'll be fine and save some money.

[FlyingPower]

You are torturing yourself too much about this.
Use this option when offered, you'll be fine and save some money.

I am very afraid of being hit by a huge tax. I was mailing with the authorities in my country and that didn't ease anything. But they said that if the seller pays taxes then that is a agreement between me and the seller (pretty obvious) but still. It's 25%VAT and 48% antidumpning tax after all, we are speaking about a doubling.

[svanimpe]

In case of prepaid tax, I think the shipping company handles clearance and taxes. They may just base that tax on the declared value of the package, instead of the actual value. Sellers often declare a low value (such as $100) to reduce the taxes.

For example, in my case (Belgium), the customs service always rejects the low declared values and stops the shipment until I provide an actual invoice with the real value of the package. Then they charge about €70-80 of fixed costs, plus 21% VAT on *everything* (incl. shipping and fixed costs). However, this process is non-transparent, adds weeks to the shipping time, and they often make mistakes

[carbonazza]

In case of prepaid tax, I think the shipping company handles clearance and taxes. They may just base that tax on the declared value of the package, instead of the actual value. Sellers often declare a low value (such as $100) to reduce the taxes.

For example, in my case (Belgium), the customs service always rejects the low declared values and stops the shipment until I provide an actual invoice with the real value of the package. Then they charge about €70-80 of fixed costs, plus 21% VAT on *everything* (incl. shipping and fixed costs). However, this process is non-transparent, adds weeks to the shipping time, and they often make mistakes

And they add 48.5% of anti dumping(targeted to steel and alloy items) on painted frames and built wheels. Not on raw carbon frames, nor rims.

[Beaumont88]

Ican at the minute arent offering tax paid shipping... I enquored about this before ordering my frame to the uk... Paid in two seperate payments and theyll only declare tge lower payment so ill pay less tax upon arrival

[svanimpe]

And they add 48.5% of anti dumping(targeted to steel and alloy items) on painted frames and built wheels. Not on raw carbon frames, nor rims.

Fortunately, I haven't had that before. I've ordered one frameset and two wheelsets without prepaid tax so far, but they were UD matte.

[FlyingPower]

And they add 48.5% of anti dumping(targeted to steel and alloy items) on painted frames and built wheels. Not on raw carbon frames, nor rims.

Thanks for your answer! This was what I suspected. Swedish law is pretty hard on taxes even if it seems like there are a lot of people on Swedish forums which have no problems I suspect that this have changed and even if it hasn't I am really paranoid and it would SUCK so hard getting hit by 25+48% on a already pretty expensive frame. 350 bucks for a frame is great but the shipping which soon is around 200 (and this shippingcost is included in the 25+48%!) is starting to flirt with insanity. If it was 350+30 I could take the risk of being hit with taxes.

Yoeleo (german warehouse) sells frames for 850 euros, it will either be Yoeleo or just some random shit for now. Sad thing I really need something, my current frame is toasted both front and back. Take care of your things because you don't want to buy stuff at this moment.

[svanimpe]

350 for a frame? I fear that may not be very high quality.

FYI: Light Carbon also has distributers in The Netherlands (https://jmcarbonframe.nl) and Denmark (https://frcarbonframe.dk), but they seem to add a large margin on top of the price you get from LC directly.

[FlyingPower]

350 for a frame? I fear that may not be very high quality.

FYI: Light Carbon also has distributers in The Netherlands (https://jmcarbonframe.nl) and Denmark (https://frcarbonframe.dk), but they seem to add a large margin on top of the price you get from LC directly.

  It was actually Light carbon which offered 007-V (the lightweight) for 350. Dengfu and Hongfu took almost 500. Velobuild seems to be one of the cheaper ones and you can get a frame for 350 there. Sorry but I find you thinking a little bit funny here, if it is more expensive you are starting to touch the prices from wellknown brands like Ribble, Dolan and Decathlon.

[svanimpe]

The prices in my head always include shipping and taxes

[FlyingPower]

Thanks for the two sites, the prices are higher but yeah that is what it will cost if the dreaded taxes hits me. I wish there was a way which was riskfree. Well I guess that is a big part of buying from China. It's cheap and you can get good stuff for a fraction of what it cost buying from wellknown brand with guarantees. Risk reward, just like it tends to be in life.