CUSTOMS - DUTIES - TAXES

[Home789]

I am based in UK and have recently got a home decor Alidropship site. The current setting is to dropship worldwide with free shipping.

1) Do we need to be aware of collecting taxes from all the countries we will be getting orders from.

2) Are there countries which do not need any documentation and are good to dropship to?

3) Do we need to be VAT registered in UK even with new business, where we are way below 83k per annum threshold?

4) Do our clients need to pay customs / duties when item arrives from AliExpress / China to there country?

 

[daniel-97]

1) Do we need to be aware of collecting taxes from all the countries we will be getting orders from.
➡ No. Unless you reach certain thresholds based on each country's tax laws for nonresident aliens

2) Are there countries which do not need any documentation and are good to dropship to?
➡ No. Every countries have laws

3) Do we need to be VAT registered in UK even with new business, where we are way below 83k per annum threshold?
➡ Then there's no point registering for the tax number. But get a tax consultant for this to be on the safe side

4) Do our clients need to pay customs / duties when item arrives from AliExpress / China to there country?
➡ Yes, if the items exceed a certain amount based on each country's law

 

[Home789]

1) Do we need to be aware of collecting taxes from all the countries we will be getting orders from.
➡ No. Unless you reach certain thresholds based on each country's tax laws for nonresident aliens

Thanks, so with worldwide free shipping setup in place, is there a list of all the countries with there thresholds. If we are within a countries threshold, do we declare income in UK and pay tax in UK (as we are based in UK).

2) Are there countries which do not need any documentation and are good to dropship to?
➡ No. Every countries have laws

3) Do we need to be VAT registered in UK even with new business, where we are way below 83k per annum threshold?
➡ Then there's no point registering for the tax number. But get a tax consultant for this to be on the safe side

4) Do our clients need to pay customs / duties when item arrives from AliExpress / China to there country?
➡ Yes, if the items exceed a certain amount based on each country's law

Again, with worldwide shipping setup in place on our site, is there a list where we can check if our client will need to pay customs or tax in there country. A list which can be in hand for worldwide countries before hand.

 

[daniel-97]

Again, with worldwide shipping setup in place on our site, is there a list where we can check if our client will need to pay customs or tax in there country. A list which can be in hand for worldwide countries before hand.

I don't think there is, sadly. But I recommend you target some specific countries first, hence you can find docs for those countries.

And stating in your shipping policy that you're not responsible for "custom taxes" after the packages have been sent will save you a lot of time.

 

[Home789]

I don't think there is, sadly. But I recommend you target some specific countries first, hence you can find docs for those countries.

And stating in your shipping policy that you're not responsible for "custom taxes" after the packages have been sent will save you a lot of time.

Thanks, is it better to work with few selected countries instead of using the worldwide shipping setup?

If so how many countries would be a good start and which ones do you suggest?

 

[daniel-97]

Thanks, is it better to work with few selected countries instead of using the worldwide shipping setup?

Yeah, but just leave them be, let everyone the chance to buy on your store, but focus your money (ads) for some countries

If so how many countries would be a good start and which ones do you suggest?

As always, the Big5: USA, UK, Canada, Australia, Netherlands

 

[chris37]

If so how many countries would be a good start and which ones do you suggest?

Is dependenting of your niche.

 

[chris37]

As always, the Big5: USA, UK, Canada, Australia, Netherlands

Again is dependenting of your niche, I don't believe is good idea you spend money in ads for all the counties like that, you must find the one which selling well in your niche and you target that one .

 

[daniel-97]

Again is dependenting of your niche, I don't believe is good idea you spend money in ads for all the counties like that, you must find the one which selling well in your niche and you target that one .

True, doing researches is always better than going in blind

 

[Home789]

Again is dependenting of your niche, I don't believe is good idea you spend money in ads for all the counties like that, you must find the one which selling well in your niche and you target that one .

My niche is home decor items like canvas wall art prints, cushion covers, vases, storage baskets / boxes, yoga mats, rugs etc.

The main reply is from USA and UK. These sales were between sept 2020 and Dec 2020. Not sure with Brexit in UK now I need to register for VAT for even below threshold, also if UK customs will be charging any customs / duty from our clients in UK now.

What about USA, being based in UK do i pay taxes on USA sales in UK?