Understanding Prices and Taxes at Svetila.com

Prices and taxes can be a bit complex, especially when dealing with international transactions and Value Added Tax (VAT).

Prices and taxes play a crucial role in determining the cost of goods and services, and at Svetila.com, we strive to make this process transparent and convenient for our customers. Here's a detailed explanation of our pricing and tax policies:

1. Prices with VAT (inc VAT):

   • This refers to the final price that customers within the European Union (EU) pay for a product or service. It includes all taxes, including VAT.
   • VAT stands for Value Added Tax, and in the case of svetila.com, the applied VAT rate is 22% because the company is based in Slovenia.
   • Customers who live in EU member countries are required to pay VAT when they make a purchase.

2. Prices without VAT (ex VAT):

   • This is the final price that companies based in EU countries pay for a product or service. It excludes VAT.
   • Companies in EU countries are exempt from paying VAT if they have a valid EU VAT ID number. This is because they are considered VAT-registered businesses and can later reclaim VAT paid on their purchases.

3. Value Added Tax (VAT):

   • VAT is a consumption tax imposed on the value added to a product or service at each stage of production or distribution. It is a common tax in many countries, including those within the European Union.
   • In the EU, VAT rates vary by country, and svetila.com applies a 22% VAT rate because it's located in Slovenia.
   • VAT is typically paid by the end consumer, but businesses may pay it on their purchases and recover it through their VAT registration.

4. VAT Exemption for Non-EU Residents:

   • If you don't live in a European Union member country, you are generally not required to pay VAT when purchasing from svetila.com. This is because VAT is a tax applied within the EU's borders.

5. VAT Exemption for EU Businesses:

   • Companies based in EU countries with valid EU VAT ID numbers are also exempt from paying VAT when they make a purchase from svetila.com. This is because they are considered VAT-registered businesses and can account for VAT separately.

6. Creating a Member Account:

   • Svetila.com offers a convenient way for customers to view the correct prices based on their location and VAT status. By creating an account and providing your address information, the website can automatically display prices either inclusive or exclusive of VAT, depending on your country of origin.

7. Deliveries to Non-EU Countries:

   • When svetila.com delivers products to countries outside the European Union, customers should be aware of potential additional fees and taxes, including customs and import taxes.
   • These extra costs are the responsibility of the purchaser and are imposed by the customs authorities of the recipient's country.

In summary, the distinction between prices inc VAT (for consumers within the EU) and prices ex VAT (for EU businesses) is important for understanding how taxes are applied to products and services in the EU. Non-EU residents are typically exempt from paying VAT, while EU businesses can reclaim it if they have a valid VAT ID. Creating a member account on the website helps ensure that customers see the correct prices based on their location and VAT status. Additionally, buyers in non-EU countries should be prepared for potential customs and import taxes when receiving international deliveries.

At Svetila.com, we aim to make your shopping experience as straightforward as possible by providing clear pricing options and information about taxes. Whether you're an individual or a business, understanding how VAT and pricing work can help you make informed purchasing decisions.

Domžale, 05 Oct 2023