VAT stands for Value-Added-Tax. It's placed on each stage of the supply chain (eg. production, sale) for goods and services. VAT applies to orders that ship to a customer in one of the EU member states (based on “ship to” address).
VAT is charged for orders shipped to the EU from any Grandville Printing location.
We calculate VAT with the following formula: (Grandville Printing product price - discounts + shipping price + services) * VAT rate %.
Key differences between VAT and sales tax:
- VAT is added to every step of the process for the manufacturer, distributor, and seller. Sales tax is only applied to the value of the product sold.
- VAT is calculated based on Grandville Printing's price, sales tax is calculated based on Grandville Printing product price (only in some states based on your retail price)
- VAT applies to delivery charges. Some states also collect sales tax on shipping costs.
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