VAT & Import Fee When DropShipping to Europe?

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beazt

New Member
Hello all,

Please help with the following queries:

1). Do I have to pay VAT when drop-shipping to Europe?

2). Is there a minimum threshold of product price like 20 Euros, below which no VAT is charged?

3). Would import fee also come into play when drop-shipping to Europe? And is there a minimum threshold below which it won't be charged?

Thanks
 
Direct Webstore

Direct Webstore

Well-Known Member
1. Customer's responsibility. It's in the "Shipping page". Read it.
2. Google it. It's faster than waiting for a European here to answer.
3. See point 1.
 
B

beazt

New Member
Thanks for the responses:

-I don't want the customer to pay VAT, they should only pay the price that was advertised on my website.
-I did Google regarding minimum threshold, but read several versions. Couldn't get any concrete response, hence posted here.
 
Direct Webstore

Direct Webstore

Well-Known Member
Import Taxes

I can't speak for Europe specifically, but import taxes in most countries are only payable on very expensive items, and most dropshipping niches selling products from Aliexpress do not fall into that category. Like it says on the shipping page ...

What about customs?
We are not responsible for any custom fees once the items have been shipped. By purchasing our products, you consent that one or more packages may be shipped to you and may get custom fees when they arrive to your country. For most products though, they pass through customs with no fees.
Click to expand...

You're worrying about something that does not need to be really worried about. Have you ever bought items on eBay from China? I have ... heaps. Ranging in price from $1 to $150 and I've never had to pay import tax. Only 10% GST and eBay adds that on. So does Aliexpress. (But not VAT)


VAT

As for VAT ... there is another thread here about that (link below) and it more or less says what I said above ... i.e Don't worry about it. Actually, I think it's the only other thread about VAT.

https://forum.alidropship.com/threads/eu-and-vat-rules.2772/

Also, in my 2 and a half years on this forum I've never read anyone having a problem with this. I've never had a problem with it and I sell worldwide including to Europe. I've never had any complaints from any customers either. But maybe you will get someone else here saying they have. But I'd be surprised if anyone does.

:)
 
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Mar

Mar

Moderator
beazt said:
Thanks for the responses:

-I don't want the customer to pay VAT, they should only pay the price that was advertised on my website.
-I did Google regarding minimum threshold, but read several versions. Couldn't get any concrete response, hence posted here.
Click to expand...
Come to think of it. If you add tax in the price of your products, are you sure your buyer will not pay tax anymore upon receiving the product? If you add tax in the price of your products, what would you do of the money added as tax? You will send it to the country of the buyer? How is it?

The buyer is the importer and he/she pay tax and it is like that in all countries regardless of the product bought from a dropshipping store or not, while you as the owner of the store pay taxes in the country where you live and run your business. How can you pay taxes in a country you don't live?
 
Direct Webstore

Direct Webstore

Well-Known Member
Mar said:
The buyer is the importer and he/she pay tax and it is like that in all countries regardless of the product bought from a dropshipping store or not, while you as the owner of the store pay taxes in the country where you live and run your business. How can you pay taxes in a country you don't live?
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Exactly. That plus the facts that Dropshipping with Aliexpress and it's slow shipping times is best done with items under $100 or so (more than that and faster shipping is demanded) which avoids most import taxes AND that Aliexpress sellers deliberately state very low prices on the packages to avoid taxes ... makes this issue not worth worrying about. I don't worry about it ... and this is the first time I've seen anyone else worry about it.
 
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Mika

New Member
If you are European company, and you are selling customers within EU... you should pay VAT (and that's get really complicated in practice), you as a company will be responsible for imports in the EU as you have sold those / taken payments. That is the one reason why I'm looking for establishing company outside the EU. Then EU customers are buying goods outside the EU and they are responsible for VAT etc.
 
Direct Webstore

Direct Webstore

Well-Known Member
Mika said:
If you are European company, and you are selling customers within EU... you should pay VAT
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I'm an Australian company and I have to pay GST on sales in Australia ... but only when those sales reach over $75,000 per year. Is there a similar threshold with VAT?

But both eBay and Aliexpress add GST for sales to Australian customers and pay it to the Australian Tax Dept. But as I mainly target the U.S ... I'd be surprised if my Australian sales alone would be over $75,000 p.a. But If they ever do ... the tax would have been paid already, and I'll figure out the ramifications of that when the time comes, I guess.

Everyone has to pay tax in their own country for sales in their own country. The O.P should research his own country's Tax Department for a clearer answer. Unless the entire continent of Europe is sharing the same tax system. No wonder Britain wants out ... lol
 
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mustscience

New Member
Your customers will often have to pay import duties. In Germany for example, once the value of a good exceeds 26€ (~30 USD as of today), the customer might have to pick up the item at customs and pay import duties.
 
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Maxventure

Member
mustscience said:
Your customers will often have to pay import duties. In Germany for example, once the value of a good exceeds 26€ (~30 USD as of today), the customer might have to pick up the item at customs and pay import duties.
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That might piss off customers having to go to customs I still can't find a reliable reference whether you can avoid registering for VAT while sending goods to Europe.
 
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mustscience

New Member
Of course, I have been pissed off many times myself, having to go to a customs office at the other end of the city at 8 AM in the morning, to wait in line for 90 minutes, in order to pay a 5$ fee. But honestly, I was annoyed at the customs office more than anything else. Not the seller's fault this system sucks.
 
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