Differentiated taxation?? With regards to a watch purchase

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Could someone explain what differentiated taxation is and how it applies with regard to a purchase subject to vat??

I'm buying a watch and one of the dealers replied with this

Me - Can I confirm the price listed is plus vat @20% for UK sales . Thanks


Seller - Greetings.
4080EUR + 90EUR shipping is final price. No additional taxes and fees.
We work on differentiated taxation. All our watches are VAT free. VAT is not refundable. You do not need to pay VAT

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JPJPJP said:

Is it a used watch?

No its new , after some research it looks like the company is registered in Hungary so I assume its taxed at source which is lower than the 20% vat

[liner33]

The confusion for me was/is that the company has a London Address , so the purchase would be subject to vat ,

So "All our watches are VAT free. VAT is not refundable. You do not need to pay VAT" would not be correct

I thought I had it sussed realising the watches are shipped from Hungary but if they have vat at 27% its no clearer

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Simpo Two said:

You could cut out the complicated bit in the middle and just ask yourself 'Is it worth 4080EUR + 90EUR shipping?' If it is, buy it, if not, don't

Give or take plus 20% you mean which is kinda key here