How should I send my articles for being stored in the Marketplace in Europe? In German, Spain, Italy, France…
Delivery Duty Unpaid (DDU): This option only requires the recipient’s email or phone number, an accurate product description and a HS Code. The downsides to shipping orders using DDU are that if the VAT is not paid at the shopping cart, the buyer in the EU country becomes responsible for paying the fees before they can receive their product. Buyers could get “buyer’s remorse” due to high extra fees required to receive their product and abandon the order, asking for a full refund.
Additionally, not using the IOSS system can cause items to be held up in customs for lengthy periods of time until the VAT is paid. Overall, this option will lead to a poor customer experience and reflect badly on your business.
Selling to International Buyers using a Marketplace?
Online retailers using marketplaces such as Amazon, eBay and Etsy will have a separate set of VAT rules. Marketplaces are considered to be involved in the sale and supply of goods, and thus the EU is requiring the marketplace to be liable for collecting and paying the VAT fees. Starting July 1, 2021, Marketplaces will collect VAT from the buyer based on the country of delivery and remit it to the responsible tax authorities. Note: VAT will be collected on the full value of the transaction including shipping costs, as the shipping costs are considered part of the total purchase.
What about Customs Forms?
Your formal customs declaration will now require more information about the items you are sending. Pro forma and commercial invoices must provide clear and accurate data including a description of goods, the quantity of items, itemized values and custom tariff codes. It is also recommended that you provide an accurate product description and HS Code.
If you know about the F22 certificate to start selling on Amazon Germany and if it’s needed or not, please take in consideration the following post:
F22 certificate to start selling on Amazon Germany
Thanks for reading this article. If you still having questions regarding how to get your Calve Pin in Spain for tax matters, you can contact me to: +49 1520 8381499 or Email to Erica@taxandlawspain.com