Mak`s Guide to VAT

4 years ago

With the reopening of the shop there`s been a lot of confusion with one particular item that I thought I`ll help clarify. The item is the "tax" that every one has been talking about which is the VAT. The VAT stands for Value Added Tax and is a common tax levied on purchases around the World (similar to a Sales Tax). The tax varies from country to country but in Denmark it is 25%.

Within the European Union of which Denmark is a part of. When a consumer that is a non-resident of that country makes a purchase and is leaving that country for a non-European Union country, they may be entitled to a refund of the VAT but it does not apply in the case of Luuux as our purchase are online. The VAT refund usually applies to tourists purchasing merchandise while visiting a country abroad that levies VAT.

So how does VAT affect us on Luuux? One common misconception that I`ve seen from Luuux members is that we have to pay the 25% tax on EVERY purchase. That is WRONG. Luuux will ONLY collect VAT on the portion of purchases made with a credit card or Paypal. If you pay in full with Luuux than there is no VAT collected. Shipping is now always paid with credit card or paypal but VAT is not collected on shipping.

Pay 100% with Luuux = No VAT

Pay 50% with Luuux/50% with CC/Paypal = 50% of cost X 25% VAT

Pay 100% with CC/Paypal = 100% of cost X 25% VAT

Hope this help some members. Look for exciting news soon from Luuux Staff on new opportunities.

Talk the TALK
1) Were you confused about the VAT?
2) What new items do you wish they would add to the shop?

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