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I want to offer a VAT-applicable item in a German e-shop and I want its end price for customers to always be the same, regardless of applicable VAT.

So if I'm e.g. selling from Germany and shipping to Germany, I want the price to be "19.99€ (incl. VAT)", but if I'm shipping to Switzerland I want it to just be "19.99€" (because VAT don't apply).

Is this acceptable from a legal perspective? Or is this common practice? Or in other words: Am I allowed to charge different prices based on the country I ship to? Because "19.99€ (incl. VAT)" is obviously a lower base price than just "19.99€".

I've noticed something similar on Steam, where they just say "all prices include VAT where applicable" - is this the same approach?

  • What you are suggesting can be basically described as "price discrimination". Whether or not it is ethical appears to be up for debate in the academic community. There have been the occasional lawsuits, though usually they are founded on the basis of a class that is already protected in other anti-discrimination law (race, gender, etc.). As you have noted, other companies already set different prices for different geographies and seem to get away with it pretty easily. I can't imagine anyone making that much fuss about it. – CactusCake Jun 23 '17 at 13:49
  • This is actually a good question! – Fattie Jun 24 '17 at 20:44

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