VAT applied to products sold in the European Union (EU)
The laws governing the member states of the European Union require Tiendetea.com to apply VAT on all orders delivered to countries belonging to the European Union. Specifically, VAT is applied according to the tax rate in force in each country.
Tiendea.com has a geolocation system that identifies the user’s IP and, therefore, their country of origin. This means that, depending on the country where our products are purchased, the VAT applied will be the one in force in each country.
Let’s give an example for a customer who buys a product from Luxembourg (general VAT rate = 17%) and another customer who buys the same product from Spain (general VAT rate = 21%):
- The Luxembourg Customer will be presented with the Retail Price with a 17% VAT included
- The customer of Spain will be presented with the Retail Price with a 21% VAT included
That is, the final price of the order may vary depending on the VAT rate applied to the order (purchases from one country or another). The final price will appear during order confirmation and will reflect the VAT rate corresponding to the destination country of the products.
And about products sold to countries NOT belonging to the European Union?
We keep the same rule. The electronic commerce laws oblige to apply the corresponding taxes to the countries of destination. So far Tiendetea.com is open in the United Kingdom and in the 19 countries of the euro zone. This means that we apply the corresponding VAT to each of these countries.