Should we add VAT on top of MSRP (EU!)

[Cris.py]

A bit of a random question but someone locally is selling a 6700 XT for 640 eur and a friend said that is basically MSRP level of price since "MSRP" in EU is 500 eur and with 22% tax it adds to 610 eur.

 

That got me thinking, is MSRP not supposed to have tax already included? Like should MSRP be the final price of a product or should you add tax on top of that? 

[manikyath]

you cant really relate an MSRP in USD to a price in euro, just as prices tend to differn in different regions within europe.

 

also, from behind the scenes experience, MSRP is a freaking joke in the EU, none of it makes sense.

[Cris.py]

7 minutes ago, manikyath said:

you cant really relate an MSRP in USD to a price in euro, just as prices tend to differn in different regions within europe.

 

also, from behind the scenes experience, MSRP is a freaking joke in the EU, none of it makes sense.

500 eur is EU msrp, not USA, that's why I asked because yes, MSRP is a joke but I still wanna know what "optimal" pricing of 6700 xt would be and how close/far that is from 640 eur (which tbh sounds like an amazing deal!)

[DoctorNick]

28 minutes ago, Cris.py said:

A bit of a random question but someone locally is selling a 6700 XT for 640 eur and a friend said that is basically MSRP level of price since "MSRP" in EU is 500 eur and with 22% tax it adds to 610 eur.

 

That got me thinking, is MSRP not supposed to have tax already included? Like should MSRP be the final price of a product or should you add tax on top of that? 

In the old days before the crazy prices, you could generally just say MSRP in USD = MSRP in euro + VAT.

[191x7]

Keep the MSRP number, replace the currency sign/letters, add VAT (based on your country) and a little bit on top of that. That's the regular EU pricing.

Also, prices in the US, even in stores, do not include VAT and it's calculated on checkout. The prices in EU stores usually show the price including VAT and other taxes.

[Cris.py]

10 minutes ago, DoctorNick said:

In the old days before the crazy prices, you could generally just say MSRP in USD = MSRP in euro + VAT.

I assume that would be 480USD -> 480 EUR + VAT = 590 eur  ... yea, 640 is a great price  I might just get it lol

[DoctorNick]

34 minutes ago, Cris.py said:

I assume that would be 480USD -> 480 EUR + VAT = 590 eur  ... yea, 640 is a great price  I might just get it lol

No let me give you an example: 599 USD = 599 EUR + VAT (some procent, eg. 18%)  = 706 EUR

[Cris.py]

7 minutes ago, DoctorNick said:

No let me give you an example: 599 USD = 599 EUR + VAT (some procent, eg. 18%)  = 706 EUR

well yea that's what I did

[FliP0x]

I'm not an expert, but I think you don't pay sales/purchase tax when buying from a natural person, only from legal entities. Correct me if I'm wrong.

 

Therefore, if the seller claims to sell you at MSRP, MSRP is what you should pay for. Adding "VAT" on top of it is just inflating the price. If he asks you to pay VAT, then demand an incoice, simple as that.

No invoice, no VAT.

[Cris.py]

11 minutes ago, FliP0x said:

I'm not an expert, but I think you don't pay sales/purchase tax when buying from a natural person, only from legal entities. Correct me if I'm wrong.

 

Therefore, if the seller claims to sell you at MSRP, MSRP is what you should pay for. Adding "VAT" on top of it is just inflating the price. If he asks you to pay VAT, then demand an incoice, simple as that.

No invoice, no VAT.

I'm talking about a store price  sorry if that was a confusion with "someone locally" as I was actually referring to a small local shop lol my bad

[FliP0x]

2 minutes ago, Cris.py said:

I'm talking about a store price  sorry if that was a confusion with "someone locally" as I was actually referring to a small local shop lol my bad

In that case, based on my experience, the retail price has the tax, for the country it is sold in, included in the price.

 

For instance, if I buy something on Amazon and get it shipped to my country, I get the difference in VAT added on top of the price, so some VAT must already be included.

 

That's a good question though. Since MSRP is mostly shown in USD, I assume they include US VAT in the price calculation. When we purchase in Europe, we get the transport cost and local VAT difference added to the price, then another VAT difference depending on if you purchase from another country.

[Stahlmann]

MSRP in Germany is typically the same as in the US for tech products. But in the EU the price already includes VAT, whereas US pricing doesn't include VAT.

[DoctorNick]

3 hours ago, Cris.py said:

well yea that's what I did

oh lol. I wasn't paying attention, writing at work, half busy lol. Sorry about that 

[Cris.py]

14 hours ago, DoctorNick said:

oh lol. I wasn't paying attention, writing at work, half busy lol. Sorry about that 

no prob lol .. all in all 640 eur is only 5% over "EU MSRP" so I might get one even though 6700 XT already has inflated price (but non XT doesn't exist anyway)