Absolutely farcical response from Devialet to my situation:-
After checking with our Financial Services, please find below the reason why the VAT stays at 20%.
In the case of a B2C relationship, the place of supply of services is in France.
When the customer is a non-taxable person, if the claimant:
a) established in France the seat of his economic activity, except when it has a permanent establishment not situated in France from which the services are provided;
b) Or has a permanent establishment in France from which the services are provided;
c) Or, in a default or b, has in France his domicile or habitual residence.
This is the case of Devialet SA. When the place of supply is in France, the place of taxation for VAT for the place of establishment of the service provider (Devialet SA). The bill mentions the French VAT regardless of the country in which the customer / contractor stays.
Therefore, VAT will be charged at 20%.
First of all, none of a), b) or c) apply to me (not unless the French have taken back Jersey without us knowing).
Secondly, the services referred to which one gets charged with tax at the country of origin are intangibles, such as paid for streaming services or downloadable software. Not physical goods. They always get charged duty at the country of entry.
So in theory, I have to pay Devialet 20% VAT and then GST to Jersey authorities when the goods are returned.
Like I said, farcical.
They are putting new 'goods' into the case I am supplying back to them, new packaging, even a new power cable and they are calling that a 'service' !!!
(25-Oct-2016, 18:33)AllenB Wrote: [ -> ]So in theory, I have to pay Devialet 20% VAT and then GST to Jersey authorities when the goods are returned.
Allen
According to the Email I got back from Devialet they pay the GST (or other taxes) when it is returned to you.
This is the question that I asked:
From this response, it looks like I pay the 20% VAT to Devialet and Devialet pay all the
import duties and taxes upon return to Canada.
This is the reply:
HI Brian,
That is correct,
This is the path, you pay the 20% VAT to Devialet and Devialet pay all the import duties and taxes upon return to Canada.
Let me know if you have additional questions,
Best Regards,
Brian
Seems like one of those cases that it all depends on who you're talking to in the company. What a joke.
If Devialet pay the duty on the point of entry to the return address, then GST in Jersey is 5%. So do they just pocket the other 15% they insist on charging?
(26-Oct-2016, 07:21)AllenB Wrote: [ -> ]If Devialet pay the duty on the point of entry to the return address, then GST in Jersey is 5%. So do they just pocket the other 15% they insist on charging?
Allen
It looks that way.
Are you sure there are no import duties as there is in Canada it's 6.5%
Read post #15 and post #19 it looks like jjmouse was able to place an order in the UK VAT exempt
you could send him a PM and get all the details.
Good luck Brian
(26-Oct-2016, 11:40)BrianT Wrote: [ -> ] (26-Oct-2016, 07:21)AllenB Wrote: [ -> ]If Devialet pay the duty on the point of entry to the return address, then GST in Jersey is 5%. So do they just pocket the other 15% they insist on charging?
Allen
It looks that way.
Are you sure there are no import duties as there is in Canada it's 6.5%
Read post #15 and post #19 it looks like jjmouse was able to place an order in the UK VAT exempt
you could send him a PM and get all the details.
Good luck Brian
Thanks Brian
Just one tax here (GST) for goods @ 5%. But Devialet have raised the heckles here by trying to fob it off as a 'service' when it patently is not.
Equally, not much I can do about it if they dig their heels in, other than not upgrade. The dealer I bought it from is in the UK and supplied it VAT free (I then paid GST on it when imported to Jersey), I'd rather not trouble him with this as dealers do not appear to get anything out of this upgrade program other than goodwill. But it is my back-stop.
In the US, they are only charging sales tax in certain states. In New York for example, it appears to be the usual 8.875% state sales tax. Similar for California. When I enter a New Jersey or Connecticut zip code, there is no tax. I'm guessing the charges to cover VAT are already baked into the main $4590/$7790 price.
(23-Oct-2016, 02:22)AllenB Wrote: [ -> ]Has the fact that the upgrade store page being down for days now got anything to do with this?
Most VAT systems will be nil payable on a repair .. technically the upgrade is a repair .. not new goods , tell them to send it out as a repair..