@KEYSIGHT: Why not simply save the hassle and customer-frustration and take some marketing budet to ship DDP ( see https://en.wikipedia.org/wiki/Incoterms )
Also this should allow to declare the manufactured price as it's the only real cost that really did happen - most likely that sum including shipping and taxes will still be less than the list-price.
If necessary you could even declare it a special/different product - slap on a sticker "Winner-Edition" and declare a corresponding price - we're not living in communism where prices are dictacted by the government
That is how they ship scopes from Malaysia that you have purchased on the Keysight Ebay store. I already addressed this in the other infamous Sebastian W thread.
You make an offer/BIN the item without taxes, and then Keysight tell you how much it is with the tax which and you then pay the total including tax. If you are a VAT registered company you can then offset the tax on your next VAT return, but not otherwise. They base the tax on the ebay price they accepted, not a list price, so what price they would base it on for a prize I don't know.
If you think somehow the tax just disappears you are deluding yourself. If the German government that you elected sees fit to levy taxes based on the worst case, then you need to lobby your government.
There is already direction from HMRC (UK tax man) on this and that is that VAT is payable on non-cash prizes with transferable value, with the taxable value calculated at the non-discounted price.
From day 1, you've had several options.
1 Don't enter the competition
2 You don't win
3 You win then wait until you know the tax liability, if any, and either
- pay it
- decline the prize
- request a lower value item
The vast majority of people will be either 1 or 2. If you are lucky, you will be 3, and no, your life will not be ruined despite the cries that the sky was falling in. You will never be worse off than you were before the competition ended.
You are being naïve if you assume that any tax liability on an international non-cash prize draw levied by the government you elected will be slurped up by someone else. If there is no liability then great, but I would not assume that.