Question re VAT on German online export purchases...

[Gene V]

I'm in the process of purchasing a shift lever for my 2014 Speed Triple from a Triumph dealership in Germany. Not only are they charging a small fortune for the lever and shipping, they insist that German law requires them to assess VAT on all boat, automobile and motorcycle parts even though they will be exported. I've purchased motorcycle apparel from Germany and did not have to pay the VAT.

Can anyone here confirm this?

[Braymond141]

I’ve never paid VAT on exports.

[Gene V]

That's what I thought...

[samy01]

If you buy something in germany, and the buyer is non-german and non-EU, then no german VAT.

But:

Parts for cars, boats, bikes and vehicles in general are excluded from this No-VAT rule. That means you don't get a VAT refund there. The german law is very detailed about what a part for a vehicle is and what isn't. Your part is such a No-VAT-refund part.

When you buy something in person in germany and you're non-german and non-EU, then you pay full price including german VAT at the counter. Then at at the border, when you want to export the bought product, you must fill out a form at the customs office and have them put their stamp on it to prove you're exporting it. That form can then be sent to the seller, who will then refund VAT to you. Here comes the relevant part: If it's a vehicle related product, he must refuse the refund.

Online shopping:

When you buy online, the procedure is different. Usually an online shop won't charge german VAT in the first place if shipping and billing address is outside of germany or EU.

I don't know if that would circumvent the above mentioned law, because VAT was never charged, so there's no VAT refund on vehicle parts that must be refused.

But I doubt this is how it works. I'm pretty sure the law also says a seller must always collect german VAT on vehicle parts.

If the law does apply to online shopping, but buyers outside germany and EU don't pay german VAT on vehicle parts, these could be possible explanations:

If a shop doesn't charge VAT on vehicle parts they send to a buyer in the US, they might be breaking their local laws. They might be doing it intentionally to be more competitive (19% lower price) and are ok with the trouble they get with their tax office. Another possibilty is that they think they're doing everything right by not charging german VAT on vehicle parts sold to outside germany and EU, because they don't know the law. The last option is this: Some shop softwares adjust prices automatically based on selected destination and the destinations VAT (means if you select USA, VAT will drop to 0%). If a shop sells things that could go on a vehicle and things that couldn't, they would need to categorize every single product according to the law. Most shops don't and it's just 0% everywhere. Might be not the way it's supposed to be.

So either the law applies and shops don't always do what they should, or it doesn't apply to online shopping.

If you were there in person buying the part, then yes, they're right. If the law also applies to online shopping, then they're also right. If the law doesn't apply to online shopping, then they're wrong. I'm not sure if it applies to online shopping or not. Therefore I can't say if they're right or not. But it's not completely made up, that law does exist.

[Gene V]

If you buy something in germany, and the buyer is non-german and non-EU, then no german VAT.

But:

Parts for cars, boats, bikes and vehicles in general are excluded from this No-VAT rule. That means you don't get a VAT refund there. The german law is very detailed about what a part for a vehicle is and what isn't. Your part is such a No-VAT-refund part.

When you buy something in person in germany and you're non-german and non-EU, then you pay full price including german VAT at the counter. Then at at the border, when you want to export the bought product, you must fill out a form at the customs office and have them put their stamp on it to prove you're exporting it. That form can then be sent to the seller, who will then refund VAT to you. Here comes the relevant part: If it's a vehicle related product, he must refuse the refund.

Online shopping:

When you buy online, the procedure is different. Usually an online shop won't charge german VAT in the first place if shipping and billing address is outside of germany or EU.

I don't know if that would circumvent the above mentioned law, because VAT was never charged, so there's no VAT refund on vehicle parts that must be refused.

But I doubt this is how it works. I'm pretty sure the law also says a seller must always collect german VAT on vehicle parts.

If the law does apply to online shopping, but buyers outside germany and EU don't pay german VAT on vehicle parts, these could be possible explanations:

If a shop doesn't charge VAT on vehicle parts they send to a buyer in the US, they might be breaking their local laws. They might be doing it intentionally to be more competitive (19% lower price) and are ok with the trouble they get with their tax office. Another possibilty is that they think they're doing everything right by not charging german VAT on vehicle parts sold to outside germany and EU, because they don't know the law. The last option is this: Some shop softwares adjust prices automatically based on selected destination and the destinations VAT (means if you select USA, VAT will drop to 0%). If a shop sells things that could go on a vehicle and things that couldn't, they would need to categorize every single product according to the law. Most shops don't and it's just 0% everywhere. Might be not the way it's supposed to be.

So either the law applies and shops don't always do what they should, or it doesn't apply to online shopping.

If you were there in person buying the part, then yes, they're right. If the law also applies to online shopping, then they're also right. If the law doesn't apply to online shopping, then they're wrong. I'm not sure if it applies to online shopping or not. Therefore I can't say if they're right or not. But it's not completely made up, the law does exist.

Thanks, goes along with what I was reading, but couldn't find anything specific re motorcycle parts...

[blckstrm]

Thanks, goes along with what I was reading, but couldn't find anything specific re motorcycle parts...

I bought all the stuff for the oil cooler and the GT adjustable front splitter from Schmiedmann and they just didn't charge me. Might be different since they're not based in Germany...

[OrientblauACS]

You do have to pay the Vat tax on everything now.

Sent from my SM-G390F using Tapatalk

[samy01]

What do you mean?

You can and will get a refund for non-vehicle related products if you're outside germany or EU. Been this way for a long time and this has not changed, in regards to the "now" in your post.

[RRSperry]

Why not buy the part somewhere else? I mean with shipping, VAT, import duty, and exchange rates, why couldn't you just be the part from a dealer?

[blckstrm]

Why not buy the part somewhere else? I mean with shipping, VAT, import duty, and exchange rates, why couldn't you just be the part from a dealer?

He probably has at this point. I think it's one thing to think you can clear up a little misunderstanding if you've found a good deal. But if not, it may not be worth following through on that deal.

[Gene V]

Why not buy the part somewhere else? I mean with shipping, VAT, import duty, and exchange rates, why couldn't you just be the part from a dealer?

Because it's for an 05 model, out of production and probably the only one left in the free world...I'm doing a mod on my 2014 and need this part....

[NeilM]

I've bought all kinds of stuff from various European sources and never been charged VAT as long as it's directly shipped out of the EU by the vendor.

That whole "VAT refund" procedure was for purchases made while visiting and then personally exported. I'm not sure that's done any more, and wouldn't be applicable in this case anyway. Seems to me that the OP's vendor is going to charge him the VAT and then pocket it.

Neil

[Braymond141]

You do have to pay the Vat tax on everything now.

Sent from my SM-G390F using Tapatalk

Uh, no. All the sites I use that charge VAT still remove it once a US address is entered. I just checked and have completed orders with them in the past few months.

[Gene V]

The vendor, a German Triumph dealer, has offered me a 5% discount...I asked for 10%. Original asking price including shipping and VAT was $165, a lot of coin for a motorcycle shift lever. I found a suitable Yamaha dirt bike lever on eBay for $31 shipped, but the guy canceled the sale because Hawaii is too far...he's in El Reno Okahoma, probably thinks Hawaii is a foreign country.