Okay, maybe not quite. But I've had a bit of a rejig of my three main Danish sites and the results can be seen at :-
http://www.ingenmoms.dk
http://www.sparmoms.dk
http://www.itcontractor.dk
Would appreciate some feedback on the results.
lørdag den 15. september 2007
torsdag den 13. september 2007
Buying from Outside the EU with PLAY
The modern history of Europe leaves some small islands off the coast of France as members of the UK, but not members of the EU. The major islands being Jersey and Guernsey.
These have been used for years as financial offshore havens, but thanks to the power of the internet some enterprising companies such as Play and BlahDVD (and now you can even add Tesco and Amazon Jersey to this list) have based themselves there to sell their wares online.
The major reason being that there are no sales taxes on these islands.
Sounds great that we can buy from these places, and indeed it is. The only catch being a limit of £15 or 22 euros. Denmark also tries to push that limit down to 80 krone for CDs, but I've yet to see the evidence.
The other great thing is that both of these stores do FREE POSTAGE to anywhere in the EU.
Play especially is highly recommended since in addition to CDs and DVDs, they have a huge range of ENGLISH BOOKS.
But the key tip is, if you can, keep the limit per order below the £15/22euros mark. Even if you end placing multiple orders per day!
Check out Play and BlahDVD today.
These have been used for years as financial offshore havens, but thanks to the power of the internet some enterprising companies such as Play and BlahDVD (and now you can even add Tesco and Amazon Jersey to this list) have based themselves there to sell their wares online.
The major reason being that there are no sales taxes on these islands.
Sounds great that we can buy from these places, and indeed it is. The only catch being a limit of £15 or 22 euros. Denmark also tries to push that limit down to 80 krone for CDs, but I've yet to see the evidence.
The other great thing is that both of these stores do FREE POSTAGE to anywhere in the EU.
Play especially is highly recommended since in addition to CDs and DVDs, they have a huge range of ENGLISH BOOKS.
But the key tip is, if you can, keep the limit per order below the £15/22euros mark. Even if you end placing multiple orders per day!
Check out Play and BlahDVD today.
onsdag den 12. september 2007
Buying on Amazon and avoiding the taxes
Amazon was the first retailer by the EU forced to charge sales taxes at the buyers rate. A clear example of the real Euro view on supposed free trade.
Painful for a Eurobuyer like me, browsing through their amazing product database, seeing loads of goods I'd love to buy at excellent prices, but excluded from doing so.
Worse still, in Denmark, and probably some other smaller european countries without their own Amazon site, it charges something like £3.99 postage per book. So, say you spotted a book for £5.99 you fancied. It would end up costing £5.99 + £3.99 + 25% MOMs, ie £12.50!!!
As such, Amazon is losing a lot of Eurotrade. A lot of Danes still buy from there though, because they're not aware of other options like Play, who do FREE postage to anywhere in Europe with no Sales taxes added (under £15/22euros).
But there is a way to buy from Amazon and avoid the MOMs, and that is to use the "Third Party Sellers". Whenever you search for a book, you will see alternative prices below the Amazon price. Click on this to see what other sellers are offering the book via Amazon.
These sellers will charge you the asking price plus, about £3.99 postage. They will not add MOMs on, except perhaps within their original asking price - the price will not change because of your buyers location. This can work out to be a good deal, and I personally have even bought the occasional book from the USA using this service. Not all sellers are willing to post to Europe, but there are so many choices you will normally find one who does.
Highly recommended. So visit Amazon and browse freely.
Please report back on any recommended sellers you find!
Painful for a Eurobuyer like me, browsing through their amazing product database, seeing loads of goods I'd love to buy at excellent prices, but excluded from doing so.
Worse still, in Denmark, and probably some other smaller european countries without their own Amazon site, it charges something like £3.99 postage per book. So, say you spotted a book for £5.99 you fancied. It would end up costing £5.99 + £3.99 + 25% MOMs, ie £12.50!!!
As such, Amazon is losing a lot of Eurotrade. A lot of Danes still buy from there though, because they're not aware of other options like Play, who do FREE postage to anywhere in Europe with no Sales taxes added (under £15/22euros).
But there is a way to buy from Amazon and avoid the MOMs, and that is to use the "Third Party Sellers". Whenever you search for a book, you will see alternative prices below the Amazon price. Click on this to see what other sellers are offering the book via Amazon.
These sellers will charge you the asking price plus, about £3.99 postage. They will not add MOMs on, except perhaps within their original asking price - the price will not change because of your buyers location. This can work out to be a good deal, and I personally have even bought the occasional book from the USA using this service. Not all sellers are willing to post to Europe, but there are so many choices you will normally find one who does.
Highly recommended. So visit Amazon and browse freely.
Please report back on any recommended sellers you find!
EU VAT Regulations and their absurdity
It has been pointed out to me that there is a Danish regulation here for MOMs limits here.
Well I wasn't aware of the 280,000kr limit regulation hidden in there, but that does shift the onus onto the retailer to manage their business - you wouldn't be charged any more VAT on EU-bought items when they arrive.
Also, I wonder if that limit is even legal since websites like Figleaves and Book Depository make clear they charge UK VAT rate only. eBay previously added VAT to sellers fees at their location rate, and I'd give up selling anything through them since moving to Denmark as a result, but now eBay have felt confident enough earlier this year to move their EU jurisdiction to Luxembourg so that all EU private sellers only pay 15% VAT on their selling fees. See here http://pages.ebay.ie/sell/VAT-ie-faqs/index.html. I'm sure they bought the best legal advice going and you wonder why Germany doesn't do something about this, since they would be the biggest losers...maybe they know eBay have an ace to play?
Let me know if you can find a case where a government has dared to challenge a business regarding this murky rule.
I checked Fleggaard (50 yards into Germany) and they do charge German VAT on pick-ups but Danish MOMs on delivered goods so they're being careful, but then again they are a Danish company so probably have to be.
A shame, since it does mean that any hard-working Danish firm trying to sell on the internet is at an immediate disadvantage against counterparts from other European countries. Hence much business lost for the nation, as proven by my own occasional forays to Euroshop sites.
As I'm self-employed I'd suspect the limit is more likely to be a way of blocking companies supplying personal services rather than flow of goods. With this rule you'd always have to open a Danish branch.
As regards the taxes and blocking - If you read up on the EU, Denmark (and Sweden) are always the blocking countries whenever cross-border trade is mentioned. They are part of the reason it takes years to get the VAT rules shifted for the betterment of the majority. They just know that the taxes on everything are so much higher here than elsewhere that they'll lose out.
Well I wasn't aware of the 280,000kr limit regulation hidden in there, but that does shift the onus onto the retailer to manage their business - you wouldn't be charged any more VAT on EU-bought items when they arrive.
Also, I wonder if that limit is even legal since websites like Figleaves and Book Depository make clear they charge UK VAT rate only. eBay previously added VAT to sellers fees at their location rate, and I'd give up selling anything through them since moving to Denmark as a result, but now eBay have felt confident enough earlier this year to move their EU jurisdiction to Luxembourg so that all EU private sellers only pay 15% VAT on their selling fees. See here http://pages.ebay.ie/sell/VAT-ie-faqs/index.html. I'm sure they bought the best legal advice going and you wonder why Germany doesn't do something about this, since they would be the biggest losers...maybe they know eBay have an ace to play?
Let me know if you can find a case where a government has dared to challenge a business regarding this murky rule.
I checked Fleggaard (50 yards into Germany) and they do charge German VAT on pick-ups but Danish MOMs on delivered goods so they're being careful, but then again they are a Danish company so probably have to be.
A shame, since it does mean that any hard-working Danish firm trying to sell on the internet is at an immediate disadvantage against counterparts from other European countries. Hence much business lost for the nation, as proven by my own occasional forays to Euroshop sites.
As I'm self-employed I'd suspect the limit is more likely to be a way of blocking companies supplying personal services rather than flow of goods. With this rule you'd always have to open a Danish branch.
As regards the taxes and blocking - If you read up on the EU, Denmark (and Sweden) are always the blocking countries whenever cross-border trade is mentioned. They are part of the reason it takes years to get the VAT rules shifted for the betterment of the majority. They just know that the taxes on everything are so much higher here than elsewhere that they'll lose out.
tirsdag den 4. september 2007
Whatever happened to the EEC?
Does anyone remember how, many years ago when Britain gained entry to the EU, it wasn't even called the EU, but the EEC (European Economic Community) or "Common Market"?
In those days, the major benefit that was sold to Britain was entry to an exclusive free trade club, and before that Britain was in EFTA (European Free Trade Association) along with a few of the Scandinavian nations.
Fast forward from 1973 to 1999 and the internet suddenly started making this free trade doctrine possible. So what happened? By a bit of rebranding the EEC had become the European Union (EU) and did things like forcing Amazon to charge VAT at the local buyers rate.
As a publicity stunt to put EU citizens off buying overseas ever again, it was a great success, but people need to know that Amazon was made an exception because of it's size. It's legal to buy from almost all other retailers in the EU and pay only their local sales tax.
I'm all for the EU as an organisation for fair, free trade, but at the moment this core belief has been forgotten...or did it ever exist except as an idea on paper from the days when they knew ordinary people wouldn't be able to take advantage of it anyway?
In those days, the major benefit that was sold to Britain was entry to an exclusive free trade club, and before that Britain was in EFTA (European Free Trade Association) along with a few of the Scandinavian nations.
Fast forward from 1973 to 1999 and the internet suddenly started making this free trade doctrine possible. So what happened? By a bit of rebranding the EEC had become the European Union (EU) and did things like forcing Amazon to charge VAT at the local buyers rate.
As a publicity stunt to put EU citizens off buying overseas ever again, it was a great success, but people need to know that Amazon was made an exception because of it's size. It's legal to buy from almost all other retailers in the EU and pay only their local sales tax.
I'm all for the EU as an organisation for fair, free trade, but at the moment this core belief has been forgotten...or did it ever exist except as an idea on paper from the days when they knew ordinary people wouldn't be able to take advantage of it anyway?
mandag den 3. september 2007
Buying on eBay and Paying NO SALES TAXES
Despite what people think, it is possible to use ebay legally to great advantage.
I'll explain this using a recent personal example.
I needed one of those cassettes you insert into your car stereo and can plug an MP3 player or CD player into so that you can listen to a greater choice of music or audiobooks while driving.
In Denmark, these things cost 250 krone or more.
On ebay, Chinese and Hong Kong sellers are selling them on "But it Now", factory direct for 99 pence, or about 11 krone! Even with postage, it still works out to £3, or 33 krone.
The seller doesn't have to charge me any sales taxes because the item is being exported. In the case of Hong Kong, there are no sales taxes anyway. Then, because the item is valued at under 22 Euros/£15, there are no sales taxes to pay in Denmark.
About 14 days later, the item arrived and works perfectly.
You will agree that that is quite some saving!
So top tip is, whatever you are looking to buy new, consider using ebay. My next purchase I'm considering is a USB TV Aerial for my PC, and these things cost 600 krone or more in Denmark. Chinese sellers are currently selling them for 99 pence + approx. £7.99 postage.
The other reason they are cheaper is that you are cutting out all the middlemen who repackage the items and add a huge mark up. So this is definitely a benefit to global direct trade, in my opinion...and global warming too if you consider the amount of wasted packaging you get with these things. The shop direct one from China arrived in a Jiffy envelope, no extra packaging.
And remember that by buying through Paypal you do have some guarantees should you pay but not receive your item.
So remember to check out ebay.
I'll explain this using a recent personal example.
I needed one of those cassettes you insert into your car stereo and can plug an MP3 player or CD player into so that you can listen to a greater choice of music or audiobooks while driving.
In Denmark, these things cost 250 krone or more.
On ebay, Chinese and Hong Kong sellers are selling them on "But it Now", factory direct for 99 pence, or about 11 krone! Even with postage, it still works out to £3, or 33 krone.
The seller doesn't have to charge me any sales taxes because the item is being exported. In the case of Hong Kong, there are no sales taxes anyway. Then, because the item is valued at under 22 Euros/£15, there are no sales taxes to pay in Denmark.
About 14 days later, the item arrived and works perfectly.
You will agree that that is quite some saving!
So top tip is, whatever you are looking to buy new, consider using ebay. My next purchase I'm considering is a USB TV Aerial for my PC, and these things cost 600 krone or more in Denmark. Chinese sellers are currently selling them for 99 pence + approx. £7.99 postage.
The other reason they are cheaper is that you are cutting out all the middlemen who repackage the items and add a huge mark up. So this is definitely a benefit to global direct trade, in my opinion...and global warming too if you consider the amount of wasted packaging you get with these things. The shop direct one from China arrived in a Jiffy envelope, no extra packaging.
And remember that by buying through Paypal you do have some guarantees should you pay but not receive your item.
So remember to check out ebay.
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