General > General Technical Chat
Rant about bad experience buying from DigiKey to Europe
benj38:
--- Quote from: Bud on June 18, 2020, 02:22:41 pm ---If UPS charged you, why you blaming Digikey?
--- End quote ---
--- Quote from: tooki on June 18, 2020, 11:00:36 am ---Duty, customs, VAT, and government fees are four different things. DDP incoterms mean customs and duty are prepaid, but not VAT and fees. Those still have to be paid.
--- End quote ---
The meaning of DDP is extremely clear, and is an international standard: the seller is responsible for all expenses, and takes all the risks of possible costs incurred by any entity (carrier, government, etc.), and of any type (taxes and fees included, as well as VAT) until the package is in the hands of the customer!
See for example https://www.linkedin.com/pulse/difference-between-incoterms-dat-dap-ddp-what-heck-vat-matthew-newman.
--- Quote from: tom66 on June 18, 2020, 05:06:17 pm ---By default incoterms DDP includes VAT. The term "DDP VAT unpaid" is an uncommon variant where the seller has not paid the VAT for an item upfront, but has paid other duties.
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100% correct!
--- Quote from: tom66 on June 18, 2020, 08:33:10 am ---Digi-Key have screwed up. Same thing happened with me with Arrow and I eventually ended up getting them to refund it.
DDP means duties and delivery paid. Any duties are the responsibility of the seller. You shouldn't have to pay anything.
Also, you don't pay VAT on the value of free things. The seller pays VAT on these and can't reclaim it. Of course Digi-Key is a US corporation so I don't know how that would work. But free shipping is not a gift, it is a business expense that is provided to make you buy the product.
--- End quote ---
100% correct!
Bud:
If the invoice came from UPS, you deal with UPS. Period.
Psi:
One of the things people don't always grasp is that the 'customs value' of a package is not what you paid for it. It's what the item is worth on the open market.
If you get a 30% discount on something worth $100 the package should still have a customs value of $100 even though you paid $70
If you get free shipping on an order this is like a discount and the customs value is whatever you paid + whatever you didn't pay for the shipping.
This seems moronic to me, but that's how it works.
You end up paying too much tax because you bought something for $70 but were charged tax on $100 etc..
Not all companies comply with the rules to the letter, some will set customs value to what you paid including any discounts, but they're not supposed to.
mzzj:
Happens all the time. UPS can't comprehend "free shipping" so they pull out some number out of their ass. They also try to charge you the processing fees instead of billing it to Digikey as supposed.
Most of the time if you provide them with a valid VAT number the package is processed trough customs in Germany and you pay 0% VAT as it goes under "VAT Exemption For Intra-Community Transactions" :-//
SilverSolder:
--- Quote from: Psi on June 18, 2020, 10:04:57 pm ---One of the things people don't always grasp is that the 'customs value' of a package is not what you paid for it. It's what the item is worth on the open market.
If you get a 30% discount on something worth $100 the package should still have a customs value of $100 even though you paid $70
If you get free shipping on an order this is like a discount and the customs value is whatever you paid + whatever you didn't pay for the shipping.
This seems moronic to me, but that's how it works.
You end up paying too much tax because you bought something for $70 but were charged tax on $100 etc..
Not all companies comply with the rules to the letter, some will set customs value to what you paid including any discounts, but they're not supposed to.
--- End quote ---
You could argue (correctly!) that the free shipping simply means the cost of shipping has been added to the product price instead!
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