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Dropshipping & taxes

Full Member
Posts: 5
Joined: 10 Feb 14
11 Feb 14 12:15:43 pm
Hi All . Like to know , How the TAX & Vat system works if we do the drops hipping from USA to Europe ? who will pay the tax by USA drop shipper or the online store owner in Europe or the customer ?

Site Admin
Posts: 6275
Joined: 27 Jul 07
11 Feb 14 08:24:59 pm
Hi Hakio and welcome to the forum

I'm not 100% sure if Europe has the same blanket rule on taxing products. In some cases it's a bit of a loop hole, using Australia as an example. You can have something sent from the US and there is no GST Tax to pay on it. Where if you purchased the same item locally, it would incur a 10% tax.

That said, there are countries where incoming products are taxed, and of course that taxation is charged to the buyer on arrival of the product.

I think the best thing to do when selling internationally is to make it quite clear in you listing's copy that buyers should be aware of their own countries requirements to avoid any such disappointments when purchasing, as it is ultimately the responsibility of the buyer.

Mark (fudjj)

Community Manager

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