Dear Topdser Sourcing Users,
We are here to share the latest updates regarding the VAT changes in the EU. Please read carefully if you are selling to EU countries.
These three solutions are available immediately to help you fulfill orders to the EU countries.
①Declare and pay VAT upfront with your own IOSS ID
Topdser will help declare and pay the standard rate VAT prior to the international shipping. The VAT tax amount will be calculated based on the product cost of your order. You may find the VAT rate information HERE.
For instance: your Topdser order contains a $10 product cost and $20 shipping cost, and the total Topdser order value is $30. You are selling to a customer in France, where the standard VAT rate is 20%. Then $10 x 20% =$2 is the VAT amount needed to be collected from you.
There will be a 0.5% processing fee, which in this case, $0.05 upon that $2.
The standard tax rate will apply to all dropshipping orders regardless of the product category.
②Declare and pay VAT upfront with your own IOSS ID
Input your own IOSS ID through Topdser navigation bar -> Setttings -> EU VAT settings
Topdser will use your IOSS ID to declare, and you will need to pay customs duties and value-added tax separately.
③Proceed without an IOSS ID - let customer pay VAT when the package arrives at the customs
We DO NOT recommend using this method unless the product value is larger than €150.
Topdser will help declare the product value, and the destination country customs will contact the customer to collect the VAT tax in order to clear the package.
Topdser is not responsible for delivery failures resulted from failed contact attempts or if the customer refuses to pay VAT when contacted. The package may be detained, liquidated or returned, and extra fees might apply to the processes.
If you need to proceed without an IOSS ID, please contact your account manager for a waiver and the next steps.
*AliExpress orders will not be covered, please contact your AliExpress supplier if you are fulfilling through AliExpress.
Please refer to this article for more information on EU VAT changes, and speak to your account manager for detailed suggestions before you place orders after June.27th.