#21 ·
Timothy Kim60 said:Basically, Canada has a higher tax rate than we do (around 27-28%), and certain components (like specific GTX 970 cards) end up being cheaper there than in the cheapest German shops (and Germany only has 19% VAT if I recall correctly).
I’d actually prefer to hear from someone who has actually ordered from them and received their package—specifically, who issues the invoice and what kind of VAT was applied.
See, under EU regulations, there are a few ways IPON can operate.
1) Payment goes through an American company, applying 25% American VAT.
2) Payment and the invoice come directly from Canada, issued with Canadian VAT.
This option works if their shipments to the US stay below the threshold set by the EU for cross-border VAT accounting.
3) The payment and invoice are from a Canadian company, but per EU VAT rules, American VAT is charged. This is mandatory under EU law once they exceed the shipment threshold for the US, and based on the numbers they claim, hitting that limit is easy.
This is the most logical setup, unless they’re shipping less than they claim or just ignoring EU rules entirely.
It would be helpful to know where the invoice originates for things like taxes and warranty claims.
Under EU laws, you have 14 days to return goods NO MATTER WHAT—if you buy something online, you can return it within 14 days without questions asked. (Except for underwear, CDov, digital content, and adult toys). Of course, this applies to the seller, which is whoever issues the invoice. (Not to mention the whole warranty situation).
BTW, I noticed on their site that you can purchase using a VAT number, allowing for the transfer of tax liability (assuming you're ordering for a business and calculating the VAT yourself to claim input credit).
(This pretty much rules out the first option I mentioned).