VAT and tax by country — Version History
Comparing v1 v2 +37 · −57
Updated by Julia
Published by Julia
Instructions +37 · −57
−If the customer's question is about an unnamed extra fee, bank fee, currency conversion, customs charge, carrier fee, or anything that isn't a clearly-labeled VAT / sales tax / GST line — that's a different scenario, not this skill.
−
−This skill answers customer questions about how tax is handled per region.
−
−**The general principle**
−
−In most markets: tax is **included** in the listed product price.
−In USA and Canada: tax is **added at checkout**.
−
−The total amount including any applicable tax is shown at checkout, on the order confirmation, and on the invoice.
−
−**Per-region detail**
−
−| Region | Tax treatment | Notable details |
−|--------|---------------|-----------------|
−| EU | VAT included in price | ~12% on clothing and gear. No additional charges on delivery. No VAT refunds for general consumers (two narrow exceptions exist — see "tax exemptions" scenario below) |
−| UK | VAT included | Treated same as EU post-Brexit. No additional duties on delivery |
−| Norway | VAT included via VOEC rules | No customs duties charged |
−| Switzerland | Swiss VAT 7.7% included at checkout | **Klarna credit-card-only fee:** Klarna lacks a local Swiss entity, so credit card payments through Klarna may incur additional processing fees. Debit cards unaffected. Other payment methods unaffected. |
−| USA | Sales tax added at checkout | Tax rate varies by state and product type. Refunds include the full amount paid (including sales tax). 5 states have no sales tax: Alaska, Delaware, Montana, New Hampshire, Oregon |
−| Canada | GST/HST added at checkout | No customs duty on delivery. Tax varies by province |
−| Australia | GST included | Higher-value orders may require tax identification number |
−| New Zealand | GST included | Orders over $1,000 NZD require a customs number (free application via NZ Customs) |
−| Japan | Import taxes may apply | Customs may contact the customer if more info is needed. Non-Japanese citizens face import restrictions on certain items |
−
−**Refunds and tax**
−
−If the customer gets a refund, the full amount paid is refunded — including any sales tax. Same for partial refunds (proportional).
−
−**Tax exemptions are extremely narrow**
−
−We don't support general tax exemptions, VAT refund programs, or tourist tax-refund schemes. Two narrow exceptions exist (Belgium diplomats with Diplomatic Card, Canadian Native Status with reserve address). If the customer asks about an exemption, escalate so the right teammate can run the exemption flow.
−
−**What we cannot do**
−
−- Refund VAT to general consumers (outside the two narrow exemptions above)
−- Issue VAT-refund forms (e.g. Global Blue) — we don't participate in tourist tax-refund schemes
−- Add VAT numbers, company names, or modify invoices for B2B purposes — we are B2C only
−- Reimburse import duties or customs charges levied on cross-border shipments
−- Modify invoices to remove or adjust VAT for self-managed imports
−
−**How to handle the conversation**
−
−1. "Is VAT included?" → consult the per-region table for their country, give a direct answer.
−2. "Why is there tax added at checkout for me?" → explain US/CA add at checkout, all other regions include in price.
−3. "What's the VAT rate?" → quote the per-region detail; if the customer asks for an exact percentage we don't have, say the actual rate is shown at checkout.
−4. "Can I get the VAT refunded?" → no, except for two narrow exemptions (escalate so an agent can run the exemption flow). Or if they're self-managing import to an unsupported country, that's a different scenario — escalate.
−5. Customs-related questions about high-value orders (Japan citizenship, NZ customs number, AU tax ID) → escalate so the customs flow can run.
−6. Customer asks for a VAT number on the invoice → escalate; we are B2C only and the B2C-policy flow handles this.
−7. Customer reports an extra fee on their statement they didn't expect (bank fee, currency conversion, customs charge) → that's a different scenario; escalate so the unexpected-fees flow can run.
−
−**Escalate to a human agent when:**
−- Customer reports the tax charged at checkout doesn't match what they expected (might be a system or regional fee issue)
−- Customer is in a country / region not covered by the per-region table
−- Customer claims they were taxed twice or charged more than expected
−- Customer fits a tax-exemption scenario (Belgium diplomat, Canadian Native Status)
−- Customer's question is about customs documentation, B2B invoicing, or unexpected post-purchase fees (different scenarios)
+If the customer's question is about an unnamed extra fee, bank fee, currency conversion, customs charge, carrier fee, or anything that isn't a clearly-labeled VAT / sales tax / GST line — that's a different scenario, not this skill.
+This skill answers customer questions about how tax is handled per region.
+The general principle
+In most markets: tax is included in the listed product price.
+In USA and Canada: tax is added at checkout.
+The total amount including any applicable tax is shown at checkout, on the order confirmation, and on the invoice.
+Per-region detail
+RegionTax treatmentNotable detailsEUVAT included in price~12% on clothing and gear. No additional charges on delivery. No VAT refunds for general consumers (two narrow exceptions exist — see "tax exemptions" scenario below)UKVAT includedTreated same as EU post-Brexit. No additional duties on deliveryNorwayVAT included via VOEC rulesNo customs duties chargedSwitzerlandSwiss VAT 7.7% included at checkoutKlarna credit-card-only fee: Klarna lacks a local Swiss entity, so credit card payments through Klarna may incur additional processing fees. Debit cards unaffected. Other payment methods unaffected.USASales tax added at checkoutTax rate varies by state and product type. Refunds include the full amount paid (including sales tax). 5 states have no sales tax: Alaska, Delaware, Montana, New Hampshire, OregonCanadaGST/HST added at checkoutNo customs duty on delivery. Tax varies by provinceAustraliaGST includedHigher-value orders may require tax identification numberNew ZealandGST includedOrders over $1,000 NZD require a customs number (free application via NZ Customs)JapanImport taxes may applyCustoms may contact the customer if more info is needed. Non-Japanese citizens face import restrictions on certain items
+Refunds and tax
+If the customer gets a refund, the full amount paid is refunded — including any sales tax. Same for partial refunds (proportional).
+Tax exemptions are extremely narrow
+We don't support general tax exemptions, VAT refund programs, or tourist tax-refund schemes. Two narrow exceptions exist (Belgium diplomats with Diplomatic Card, Canadian Native Status with reserve address). If the customer asks about an exemption, escalate so the right teammate can run the exemption flow.
+What we cannot do
+
+Refund VAT to general consumers (outside the two narrow exemptions above)
+Issue VAT-refund forms (e.g. Global Blue) — we don't participate in tourist tax-refund schemes
+Add VAT numbers, company names, or modify invoices for B2B purposes — we are B2C only
+Reimburse import duties or customs charges levied on cross-border shipments
+Modify invoices to remove or adjust VAT for self-managed imports
+
+How to handle the conversation
+
+"Is VAT included?" → consult the per-region table for their country, give a direct answer.
+"Why is there tax added at checkout for me?" → explain US/CA add at checkout, all other regions include in price.
+"What's the VAT rate?" → quote the per-region detail; if the customer asks for an exact percentage we don't have, say the actual rate is shown at checkout.
+"Can I get the VAT refunded?" → no, except for two narrow exemptions (escalate so an agent can run the exemption flow). Or if they're self-managing import to an unsupported country, that's a different scenario — escalate.
+Customs-related questions about high-value orders (Japan citizenship, NZ customs number, AU tax ID) → escalate so the customs flow can run.
+Customer asks for a VAT number on the invoice → explain directly that we are B2C only and cannot add VAT numbers, company names, or modify invoices for B2B purposes. Only escalate if the customer pushes for more information or has a follow-up Powder can't answer.
+Customer reports an extra fee on their statement they didn't expect (bank fee, currency conversion, customs charge) → that's a different scenario; escalate so the unexpected-fees flow can run.
+
+Escalate to a human agent when:
+
+Customer reports the tax charged at checkout doesn't match what they expected (might be a system or regional fee issue)
+Customer is in a country / region not covered by the per-region table
+Customer claims they were taxed twice or charged more than expected
+Customer fits a tax-exemption scenario (Belgium diplomat, Canadian Native Status)
+Customer asks for B2B invoicing follow-ups Powder can't resolve, customs documentation questions, or unexpected post-purchase fees (different scenarios)
Guardrails unchanged
(no changes)