Question about VAT and customs for European backers

Games Discussion Ars Magica
1

Hello,
I’m eagerly waiting for the start of the Backerkit crowdfunding, and I fully intend to acquire my copy of the “Definitive Edition.” However, I have a question concerning European countries, such as Belgium, for instance, where games are subject to a 21% VAT. This is the case across all European countries.

Now, while I have no issue paying my taxes, the shipment of a parcel from a non-European country to Europe not only incurs the 21% VAT but often an additional hefty "customs fee," which typically equals the VAT itself. So, if the “Definitive Edition” costs, for example, the equivalent of €100, I would end up paying €142.

Unless, of course, the non-European seller (webshop) is registered under the Import One Stop Shop (IOSS) system (more info: New VAT rules: What does the OSS scheme mean for your EU customers? - Accountable).

So, where will the parcel be shipped from?
If it’s from outside Europe, are you registered with this system?

I apologize for raising such a mercantile question, but I think it’s an important one for European backers.

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Hi - We ship from the USA, but we don't use the IOSS.

Due to the size/weight of Definitive Edition, we are expecting to ship via FedEx. For most EU countries we are able to pay VAT at the border -- FedEx pays, and bills it back to us, and our terms with them are that we don't get a brokerage charge on Express shipments if we pay the VAT. (There is a charge if the bill for VAT is given to the customer.) So our plan is that we will collect VAT along with shipping (and the VAT that is due on the shipping itself), so that the recipient doesn't get that extra fee.

Definitive Edition should count as a book and be subject to the lower VAT rate that applies to books in many countries. (The lower rate also is applied to the shipping charge, if only books are in the package.)

There are a couple of EU countries that won't allow charges to be billed back to the sender -- Greece is the one that comes to mind.

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Thank you for your quick response.
I think that VAT on books in my country amounts to 6% (but apparently, the next government could drop it to 9%).
Anyway, I am delighted that things will happen like this.

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