dinomartino1
Well-Known Member
Do Aero, kelso, or eastman deduct the cost of the local vat tax off the price for overseas orders
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Aero, kelso, eastman overseas VAT
- Thread starter dinomartino1
- Start date
Rutger
Well-Known Member
Uh oh, someone just opened a vaguely familiar can of worms.
Oddly enough I can't answer your question, sorry 'bout that.
I well remember some here went red-headed off the charts over this like oh five years ago or so, which may mean that some suppliers don't subtract the VAT.
You can most certainly find a nice debate on this very subject by doing a search.
Oddly enough I can't answer your question, sorry 'bout that.
I well remember some here went red-headed off the charts over this like oh five years ago or so, which may mean that some suppliers don't subtract the VAT.
You can most certainly find a nice debate on this very subject by doing a search.
dinomartino1
Well-Known Member
I remember the old thread just wondering what the situation is now as I in am in the market for a new jacket and the fact of it is quite simple, a UK retailer does not pay the govt VAT on overseas sales, any excuses about accounting, too much paperwork, complex tax laws etc. is simply rubbish. I have been buying quite a bit from the UK lately and all the websites automatically took the VAT off the price and these where not large retailers.
If I was to buy a jacket from Vanson they would not charge me an extra 6.625% which is theMassachusetts sales tax and then pocket the money for themselves.
If I have to pay the same price as somebody in the UK even though the receipt says %0 vat I am being overcharged %20 , 200 pounds for a grand.
If I was to buy a jacket from Vanson they would not charge me an extra 6.625% which is theMassachusetts sales tax and then pocket the money for themselves.
If I have to pay the same price as somebody in the UK even though the receipt says %0 vat I am being overcharged %20 , 200 pounds for a grand.
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dinomartino1
Well-Known Member
Charging VAT on an invoice to a customer and keeping the money for yourself would be illegal and a serious criminal offence, stating on an invoice that vat is %0 and inflating a price by an extra %20 is perfectly legal.
stanier
Well-Known Member
I think most if not all Japanese vendors do remove their sales tax / purchase tax or whatever you want to call it. Governments Thinking they have a god given right to your cash is what I call it, but that’s another story...
Anyway, in Australia might it be better to go with a Japanese vendor? Mash or Buzz or someone? Some of the other Australian members maybe able to help.
Cheers
Anyway, in Australia might it be better to go with a Japanese vendor? Mash or Buzz or someone? Some of the other Australian members maybe able to help.
Cheers
Ken at Aero Leather
Well-Known Member
This is what we said the last time this subject came up........nothing has changed in our policy and reasons for our policy
We do, and always have, had one price Worldwide.
It is standard practice in Europe is to list items for sale at a price that includes VAT, how many European firms deduct any proportion of that price relating to the VAT on exports I couldn’t say
When we first started Aero over 90% of our production went to trade customers with very little retail other than in The UK.
Once we started to make Horsehide jackets we found strong price resistance in The UK while our overseas market increased. The bottom line was that if we wanted any home market we were going to have to swallow the loss of the VAT content of the price we get in The UK or price ourselves out of The UK market. As these sales were such a small portion of our sales it seemed a price worth paying. Basically we were/are supplementing our UK retail business by taking the loss, rather that overcharging our export customers.
In the same way the volume of our trade sales keep the prices down on all retail sales even though traders pay far less than anybody for their jackets.
Over the years our home market has increased and while one Worldwide price might seem unfair, and I can see everyone’s point, there is more to consider.
Cost of supplying a customer overseas is more expensive than within The UK.
While local sales are usually done by phone, overseas sales can take dozens of (time consuming) emails, all needing to be written and replied to and export paperwork is more involved.
Then there is the cost of exchanges, returns. We do not charge return postage for replacements, even if it’s not our fault that a second jacket or alteration is needed. Also we do not charge for alterations to returned jackets. While the cost of this is very low within The UK it can run well into 3 figures for exchanges, returns from North America or Japan.
Twice during the last twenty years when the dollar was low against the pound we gave free shipping to North America (That was several years in total) and we also put hundreds of free Lochcarron scarves in with jackets going overseas.
OK, I’m sure there will be some who think none of this might seem to justify what is being described as a “surcharge” on export jackets but it all adds up and as all Aero customers know, we go out of our way to give the best possible customer service whilst keeping our prices as low as possible and we will continue to do the best by our customers.
We do not charge VAT to American customers but we are forced to “swallow” the VAT portion of our price in The UK (paid to HM Government by Aero along with all the other UK taxes imposed on us, both blatant and hidden…… NI contributions, employment taxes, waste disposal taxes, rates, etc etc)
There are many instances where a home market product costs less than one bought abroad but as regards Aero this seems to be a UK/USA problem which appears be connected to the fact that we have very few retail outlets in either The UK or USA.
Although our biggest markets are Germany and Japan followed by France, we get very little direct mail orders from these countries, shoppers preferring to pay a much higher price to buy from one of the shops we supply even though they know how to order online and make substantial savings. Customers in the UK and USA pay a much lower retail price than charged in these countries even allowing for the “VAT”. Savings can be made across the board by German, French and Japanese customers buying direct from Aero yet the % of retail sales as opposed to trade sales is quite low in comparison.
It also benefits us that special orders from these stockists also tend to be less complicated, and therefore less time consuming, as our stockists (trade price customers) can’t return special orders, they have to sell them from stock, same as we do with our returns on our sales page.
Pricing a jacket is all about numbers, the more jackets we make, the less the overheads on each one so very involved “specials” can reduce the number of garments made per week.
All in all, we believe our jackets are exceptionally good value whether bought direct from the factory or not, and our customers in countries where our jackets are in stores seem to agree while those who shop on-line obviously get the best deal.
As a footnote, we give five weeks paid holidays to each staff member even though we already pay the highest level rates in the UK clothing industry, well over the current official "Living Wage", with such skills honed over 20/25 years we wouldn’t want to loose any top machinists would we?
We do, and always have, had one price Worldwide.
It is standard practice in Europe is to list items for sale at a price that includes VAT, how many European firms deduct any proportion of that price relating to the VAT on exports I couldn’t say
When we first started Aero over 90% of our production went to trade customers with very little retail other than in The UK.
Once we started to make Horsehide jackets we found strong price resistance in The UK while our overseas market increased. The bottom line was that if we wanted any home market we were going to have to swallow the loss of the VAT content of the price we get in The UK or price ourselves out of The UK market. As these sales were such a small portion of our sales it seemed a price worth paying. Basically we were/are supplementing our UK retail business by taking the loss, rather that overcharging our export customers.
In the same way the volume of our trade sales keep the prices down on all retail sales even though traders pay far less than anybody for their jackets.
Over the years our home market has increased and while one Worldwide price might seem unfair, and I can see everyone’s point, there is more to consider.
Cost of supplying a customer overseas is more expensive than within The UK.
While local sales are usually done by phone, overseas sales can take dozens of (time consuming) emails, all needing to be written and replied to and export paperwork is more involved.
Then there is the cost of exchanges, returns. We do not charge return postage for replacements, even if it’s not our fault that a second jacket or alteration is needed. Also we do not charge for alterations to returned jackets. While the cost of this is very low within The UK it can run well into 3 figures for exchanges, returns from North America or Japan.
Twice during the last twenty years when the dollar was low against the pound we gave free shipping to North America (That was several years in total) and we also put hundreds of free Lochcarron scarves in with jackets going overseas.
OK, I’m sure there will be some who think none of this might seem to justify what is being described as a “surcharge” on export jackets but it all adds up and as all Aero customers know, we go out of our way to give the best possible customer service whilst keeping our prices as low as possible and we will continue to do the best by our customers.
We do not charge VAT to American customers but we are forced to “swallow” the VAT portion of our price in The UK (paid to HM Government by Aero along with all the other UK taxes imposed on us, both blatant and hidden…… NI contributions, employment taxes, waste disposal taxes, rates, etc etc)
There are many instances where a home market product costs less than one bought abroad but as regards Aero this seems to be a UK/USA problem which appears be connected to the fact that we have very few retail outlets in either The UK or USA.
Although our biggest markets are Germany and Japan followed by France, we get very little direct mail orders from these countries, shoppers preferring to pay a much higher price to buy from one of the shops we supply even though they know how to order online and make substantial savings. Customers in the UK and USA pay a much lower retail price than charged in these countries even allowing for the “VAT”. Savings can be made across the board by German, French and Japanese customers buying direct from Aero yet the % of retail sales as opposed to trade sales is quite low in comparison.
It also benefits us that special orders from these stockists also tend to be less complicated, and therefore less time consuming, as our stockists (trade price customers) can’t return special orders, they have to sell them from stock, same as we do with our returns on our sales page.
Pricing a jacket is all about numbers, the more jackets we make, the less the overheads on each one so very involved “specials” can reduce the number of garments made per week.
All in all, we believe our jackets are exceptionally good value whether bought direct from the factory or not, and our customers in countries where our jackets are in stores seem to agree while those who shop on-line obviously get the best deal.
As a footnote, we give five weeks paid holidays to each staff member even though we already pay the highest level rates in the UK clothing industry, well over the current official "Living Wage", with such skills honed over 20/25 years we wouldn’t want to loose any top machinists would we?
dinomartino1
Well-Known Member
Well at least you are open about your policy, there are points I would disagree about but I won't go into those as it would not change anything and no point starting another twenty page thread on the subject.
I wanted to know if the situation has changed and it has not, question answered.
I wanted to know if the situation has changed and it has not, question answered.
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geoff.adams.96
Active Member
Well, as far as this topic is concerned I'm lucky enough to live in the UK to get Aero stuff at the best price. The one A2 I've bought from them is one of the finest pieces of clothing I've ever owned, and compared to their upmarket competitors they seem to rock in at around half the price. Their customer care is superb, so you take as you find, and from now on their site is always where I will look first for flying jackets etc. Even if you live overseas their prices must surely be very competitive in the overall market.
An off topic question for Ken, if I may, I've been keeping my eyes open for a pair of the USAAF flying gloves in seal brown but you've been out of stock in everything but XL for a while. I'm medium, any idea when they'll be back in stock please?
Sent from my SM-G531H using Tapatalk
An off topic question for Ken, if I may, I've been keeping my eyes open for a pair of the USAAF flying gloves in seal brown but you've been out of stock in everything but XL for a while. I'm medium, any idea when they'll be back in stock please?
Sent from my SM-G531H using Tapatalk
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