Quote (Fgs @ Feb 2 2025 02:29pm)

Surely it has nothing to do with the size of cars Europeans use (smaller) and the need for higher fuel efficiency..right?

Who told you it was all about the VAT?

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The EU import VAT rates for goods imported from the US vary depending on the EU member state and the type of goods. Here's a general overview:

Standard VAT Rates: All EU countries must have a standard VAT rate of at least 15%, but this rate can be higher. For example:
Germany: 19%
France: 20%
Hungary: 27% (one of the highest in the EU)
Luxembourg: 17%

Quote (ofthevoid @ Feb 2 2025 02:34pm)

Localizing production to avoid tariffs is pretty common. That's why you have foreign companies that chose to make their stuff within that country, as to avoid these VAT (another name for VAT is a tariff btw). NAFTA gave favorable trade agreements for countries like Mexico which then resulted in a lot of US and foreign car makers to move their factories to Mexico. This is common knowledge.


Oh, just so you are aware, this is the typical tariff EU countries have on US exports. We do not have similar blanket tariffs on EU goods.

Quote (ofthevoid @ Feb 2 2025 02:34pm)

Localizing production to avoid tariffs is pretty common. That's why you have foreign companies that chose to make their stuff within that country, as to avoid these VAT (another name for VAT is a tariff btw). NAFTA gave favorable trade agreements for countries like Mexico which then resulted in a lot of US and foreign car makers to move their factories to Mexico. This is common knowledge.


Oh, just so you are aware, this is the typical tariff EU countries have on US exports. We do not have similar blanket tariffs on EU goods.

Quote (Fgs @ Feb 2 2025 02:36pm)

Or maybe ford is in Europe because it opened its first manufacturing plant in EU in 1911, 40 years before the vat lmao

Quote (ofthevoid @ Feb 2 2025 02:45pm)

Ford is in Europe because they can make money selling cars. It's also true that it's better to have factories within the EU because you can avoid tariffs on goods produced and traded within the EU itself. It's called intra-community supply. There's still some level of VAT but not to the same level if that car was made in the US for example. Both things could be true at the same time though.

I'm curious, why you're okay with one side having a VAT and are bothered by other side reciprocating? Don't you believe in fair trade?

Quote (Fgs @ Feb 2 2025 02:46pm)

I'm not okay with anything. Just pointing out that your claim that ford moved to Europe to avoid vat is incredibly misleading

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Does mexico have a VAT on US goods?


Yes, Mexico does impose a Value Added Tax (VAT), known locally as "Impuesto al Valor Agregado" (IVA), on goods imported from the United States. Here are some key points about how VAT works for U.S. goods entering Mexico:

VAT Rate: The standard VAT rate in Mexico is 16% for most goods and services. In the border zone (a 20 km strip along the U.S.-Mexico border and the entire Baja California Peninsula), the rate is reduced to 10%.
Application of VAT:
Imports: VAT is charged on the importation of goods into Mexico. The VAT is calculated on the customs value of the goods, which includes the cost of the goods, plus shipping, insurance, and any import duties.
Payment: The importer (which might be the Mexican customer, a Mexican subsidiary, or a distributor) is typically responsible for paying the VAT at importation. This can be recovered later if the goods are sold within Mexico, as businesses can offset the VAT paid on inputs against the VAT collected on sales.

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Does the US have a VAT on Mexican goods?
No, the United States does not have a Value Added Tax (VAT) system. Instead, the U.S. employs a different taxation framework:

Customs Duties: Goods imported from Mexico, like from any other country, are subject to customs duties based on the Harmonized Tariff Schedule (HTS). These duties are assessed according to the type, value, and origin of the goods.
Sales Tax: Once Mexican goods enter the U.S. and are sold, they might be subject to state sales tax, depending on the state where the sale occurs. Sales tax rates vary from state to state and sometimes within municipalities.
Excise Taxes: Certain goods like alcohol, tobacco, and gasoline might incur federal excise taxes.
No VAT: There is no VAT levied by the U.S. government on goods imported from Mexico or any other country. The VAT system does not exist in the U.S. tax structure, so Mexican goods do not face a U.S. VAT upon importation or sale within the U.S.

Quote (ofthevoid @ Feb 2 2025 02:49pm)

It's not, it's part of the reason. Lets move to Mexico. This is generated by AI but you can check yourself.

Quote (Fgs @ Feb 2 2025 02:57pm)

So we have duties on imports lol

It's a vat with a different name no? Although probably less

Quote (ofthevoid @ Feb 2 2025 03:00pm)

Currently proposed tariffs are literally in line with that "Harmonized Tariff Schedule (HTS)". So if they are slapping a 16% VAT and we reciprocate, what's the problem? Or is it just because orange man proposed it and TV told you to be upset or? I don't get it?

Quote (Ryvulet @ Feb 2 2025 08:52am)

19 and 24 is sufficient i see people like that all the time buying houses, idk what u mean