We’re sorry to announce that we were just forced to raise the prices in our eshop by charging all our customers for VAT – even those from outside the EU. Unfortunately, the time during that we were able to offer free shipping along with low prices seems to be gone. Apparently, Czech legislative doesn’t support friendly approach to customers nor small export companies. On the other hand, it supports unnecessary administrative and complications. It’s all about the VAT law.
Because of the law mentioned above, we need to have a tariff declaration to everything we export – even though we pay no tariffs. That declaration, of course, is not for free, actually it’s quite expensive.
So why exactly do we, as a VAT registered subject, have to charge all our customers for VAT?
We export goods of low price, usually around $100, out of EU. Because of the law, the shipping cost rises, because it has to include the cost of the tariff declaration, which is $20. So, when the value of the goods is $100, the total amount is the same as if the 21% VAT is included into the price. If the value of the goods is lower than $100, the declaration can be more expensive than the value of VAT. In such a situation, we had to decide, whether to charge for VAT or higher shipping costs. Since charging for VAT is less complicated and, not on the last place, cheaper, we decided for VAT.
Here is shown, why only some – chinesse usually – eshops are able to offer free shipping even when the order value is verey low. We would like to keep pace with the concurency and not to charge our customers for more than necessary, but the legislative doesn’t allow us to keep our standards for any longer. Currently, we’re looking for distributors to help us especially on American market, because our ability of competition was considerably reduced.
We would like to apologize all our customers from outside the EU for raising the prices.