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What exactly is Prepaid tax?

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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:

--- Quote from: carbonazza on March 09, 2021, 03:55:22 PM ---You are torturing yourself too much about this.
Use this option when offered, you'll be fine and save some money.

--- End quote ---

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:

--- Quote from: svanimpe on March 10, 2021, 01:02:21 AM ---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

--- End quote ---

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.

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