Why Prices Vary by Country – VAT & Local Tax Explained
Introduction
When you shop with us, you might notice that the total price changes when you choose a different delivery country. This isn’t a price trick – it’s all about local taxes and VAT rules. We believe in transparency, so here’s a simple explanation.
What Is VAT?
VAT (Value Added Tax) is a consumption tax set by each country’s government, applied to most goods and services.
In the EU and many other regions, VAT must be included in the displayed price. Each country sets its own VAT rate – for example: Germany: 19%, France: 20%, and some countries may be 0% (e.g. VAT-exempt territories).
How VAT Affects the Price
Local VAT Rates Apply. The price you see includes VAT for the country where your order will be delivered. When you change the delivery country, our system automatically applies that country’s VAT rate.
VAT vs. No VAT. If your country has a lower VAT rate than Germany, you’ll see the total go down. If your country’s VAT rate is higher, you’ll see a small increase.
VAT Exemption for Businesses. If you are an EU business with a valid VAT ID, you can shop without paying VAT.
VAT Calculation Formula
To understand how VAT changes the final price, here’s the formula we use:
Price with VAT = Base Price (excl. VAT) × (1 + VAT rate)
Example for Germany (19% VAT):
Base Price (excl. VAT): 503,36 €
VAT Amount: 503,36 € × 0,19 = 95,64 €
Total Price (incl. VAT): 503,36 € + 95,64 € = 599,00 €
Example Price Comparison
Delivery Country | VAT Rate | Total Price* |
---|---|---|
Germany 🇩🇪 | 19% | 599,00 € |
France 🇫🇷 | 20% | 605,00 € |
Norway 🇳🇴 | 0% | 503,36 € |
*Example based on a product priced at €503.36 before VAT. Actual totals may vary slightly.
Our Transparency Promise
All prices are calculated according to local tax laws. VAT is clearly shown during checkout – no hidden fees. The price you see at checkout is the final amount you pay (tax included or excluded).