[Vigilanteman]

That’s the way it works. And the buyer may be an auto plant buying headlamps from a headlamp manufacturer.

[kabar]

My point is the VAT is passed on to the consumer. As a diplomat, I was able to recover the VAT.

US exports to the EU are assessed a VAT at the point of entry. The VAT rate on imports is calculated based on the value of the goods plus any customs duty. The person or firm responsible for paying this VAT rate is called the importer of record. If the U.S.-based exporter is listed as the importer of record, then the U.S.-company takes on all responsibilities associated with the VAT. However, in most “business to business” transactions (B2B), the importer of record is the business customer located within the European Union.

EU VAT rates

These VAT rates make it difficult for the US to penetrate the EU market. Customs duties/tariffs are charged on top of the VAT.