An Update on VAT and Customs

We’re excited to roll out an update regarding value-added taxes (VAT) and customs.  We know many of you have anxiously been waiting for this information and we appreciate your patience.  

Like most things involving federal legislation, navigating the VAT and customs process has taken significant time.  Throughout this journey, we’ve been committed to securing the most complete and accurate information possible.  Consequently, we’ve gone to great lengths to verify details.  We’ve also contacted companies that have successfully navigated VAT and customs issues after being funded through Kickstarter. We’ve tapped their expertise and advice to help us better serve you.

For HEXO+, our VAT situation is about as complex as it gets.  This stems from the diverse facets of our global footprint.  Our mother company is based in France while the arm of our company that handled our Kickstarter campaign is rooted in the US.  And because our manufacturing occurs in France, HEXO+ is subject to certain VAT and customs rules that are especially relevant to European backers and customers.

Essentially, VAT and customs issues can be divided into three distinct scenarios:

 

Scenario One: Your Delivery Address is in North America

If you are either located in North America or simply want your HEXO+ to be delivered there, our daughter company—Squadrone Systems Inc.—is the legal entity importing the units and accessories from France.  Consequently, WE WILL HANDLE ALL CUSTOMS DUTIES—yes, that means we will pay for them.  The only thing you’ll have to worry about is cooking up ideas for what to film once your unit arrives.  Consider this a thank you gift for all of your support and patience.

Please note that you can still edit your delivery address if anything has changed.  To do this, send an email to [email protected] with the subject “Address Change for My Order.”  In the email, please include the following information:

  • The email address you used on Kickstarter or when you pre-ordered your unit
  • The new address to which you want your HEXO+ delivered

If you are not sure what email address you used on Kickstarter or with your pre-order, please log into your personal page on our website to find out.

 

Scenario Number 2: Your Delivery Address is Within the European Union

If you’re having your order delivered within the European Union, by law it is subject to customs duties on import.  This stems from HEXO+ being considered a product from the U.S.  These customs duties apply even if you ordered HEXO+ through our Kickstarter campaign (as soon as we start delivering rewards, they are considered a purchase).

Since we are manufacturing HEXO+ and our accessories in Europe, your order won’t go through customs.  Nonetheless, we are required by law to collect VAT for deliveries in Europe.  Initially, we believed these fees would not apply to HEXO+.  Consequently, we promised you wouldn’t have to pay them.  We have since learned that VAT applies to our products shipped within the EU.  Nonetheless, we are committed to honoring our word.  We will be paying VAT for all units and accessories purchased thus far. In addition to keeping our word, we simply want to streamline the process on your end.  We’re grateful for your support and patience as we’ve navigated these issues.

Please note, however, that moving forward we will add a 20% VAT (in accordance with French requirements) for all of our European backers and customers on new orders for HEXO+ units, spare parts, and accessories.

In the event that your order is on behalf of a company based in Europe, you can purchase units and accessories while excluding them from VAT.  If this is the case with your orders, please send an email to [email protected] with your company name and European VAT number.  In these cases, we’d be grateful if you contacted us, as this information can help us save on VAT for past orders while also helping you with future ones.

 

Scenario Number Three: Your Delivery Address is neither in North America nor the European Union

If you are either located outside North America and Europe or are having your order shipped outside these continents, you won’t pay additional VAT.  You will, however, be subject to customs duties based on your country’s regulations.  These duties will need to be paid directly to the delivery service upon receiving your order.  Please note that they change frequently and can be determined at the time your order is imported into your country.

We apologize for the delay in providing this update, and answers to questions surrounding VAT and customs.  Please know that we simply wanted to make sure we had all of the details correct and fully understood the implications surrounding the shipment and import of all orders.

On a related note regarding delivery, we have received orders for HEXO+ within several countries that have additional certification and documentation requirements.  We’re currently working on this and will provide you with information and updates as soon as possible.

 

It’s an exciting time.  We’re stoked on the great feedback and enthusiasm from those of you who have already received your HEXO+.  We can’t wait to check out your footage as you continue to become more comfortable and creative with the system.  We look forward to being in touch.

 

Antoine

Comments/Discussions

Antoine
Antoine is a co-founder and our flag-bearing CEO, making sure we know where we're going, we deliver on time and we have the most epic team in the biz. Plus tons of stuff that have to do with management, finances, administration, which most people consider wouldn't consider fun. He does.