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Discussion Starter · #1 ·
I have a question about VAT deduction in the US.

If a non EU citizen orders clothes by internet from, for example, Drakes in London, there will be an automatic VAT deduction from the price being paid.

Would the same thing occur, if I as an EU citizen (Swedish, actually) would order clothes by internet from a US company, for example,
Brooks Brothers?

Or do I have to buy the clothes personally in the US and present my receipts to a customs office at the airport in order to get a deduction?

Hope to hear from you...
 

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There is no VAT, as such in the US . . .

The concept of a value-added tax is not one that applies to US retail commerce. Sales taxes are levied by individual states (sometimes in concert with individual cities), and the sales taxes and their exemptions (for example - no sales tax for clothing items under $110 in New York) vary state by state. The tax is levied on top of the retail price.

Now, when ordering via the Internet, especially for delivery to a non-US destination, no sales tax would likely to be levied. (There is currently a move within the US for Internet retailers to charge the sales tax of the state in which the retailer does business, regardless of the taxes, if any, of the US destination.)

Sales taxes in New York City, for clothing items above $110, is currently 4%, though it may revert to the previous level of 8.625 % soon, due to budget gaps at the state level. That would be about the maximum tax levied within the US - a snip in comparision to the 25% VAT equivalent that Scandinavian countries levy, if memory serves me correctly.

As a citizen of an EU nation, you have much more to worry about, tax-wise, from import duties. I know that friends who have ordered things from the US in the UK have been slammed with very high import duties, and I cannot imagine that Sweden is more liberal in this regard.
 

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Discussion Starter · #3 · (Edited)
The concept of a value-added tax is not one that applies to US retail commerce. Sales taxes are levied by individual states (sometimes in concert with individual cities), and the sales taxes and their exemptions (for example - no sales tax for clothing items under $110 in New York) vary state by state. The tax is levied on top of the retail price.

Now, when ordering via the Internet, especially for delivery to a non-US destination, no sales tax would likely to be levied. (There is currently a move within the US for Internet retailers to charge the sales tax of the state in which the retailer does business, regardless of the taxes, if any, of the US destination.)

Sales taxes in New York City, for clothing items above $110, is currently 4%, though it may revert to the previous level of 8.625 % soon, due to budget gaps at the state level. That would be about the maximum tax levied within the US - a snip in comparision to the 25% VAT equivalent that Scandinavian countries levy, if memory serves me correctly.

As a citizen of an EU nation, you have much more to worry about, tax-wise, from import duties. I know that friends who have ordered things from the US in the UK have been slammed with very high import duties, and I cannot imagine that Sweden is more liberal in this regard.
Thank you!

And yes import duties may be a problem when buying clothes from the US. I experienced that one time, when VAT was added. The majority of the parcels, however, are not controlled, and most times you are lucky.
 
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