Delivered Duty Paid to EU

Discussion in 'International Business' started by DefinitelyMaybeUK, Jan 12, 2021.

  1. DefinitelyMaybeUK

    DefinitelyMaybeUK UKBF Contributor Free Member

    53 8
    Hi,

    I’m looking for advice on DDP shipping to the EU. I’m in the UK (England), VAT registered and looking to allow EU B2C folk to pay upfront for any tariff duties and VAT and avoid any customs delays and handling fees on their part.

    I’m aware of the 1st July scheme for sub €150 orders, but what of future orders above the €150 free tariff limit or when shipping up till then? Is anyone doing this now? I’ve previously just been using Interparcel and the like pre-brexit, and have looked at UPS, but they don’t seem to offer anything (yet). Would I need to register for VAT in each EU country for orders above the pending IOSS scheme?!

    Ideally the customer would be able to check-out through our site and any required tariff duties would be calculated together with VAT due - but being able to do an offline quote of the tariffs and VAT is a good fallback.

    We have HS codes and origins for our products already and would ideally be able to use an API to, say, UPS or DPD in order to get a quote of tariffs/VAT that would be due so the customer can be charged up front. The complication on this aspect is that the full (8 or 10 digit) HS code is likely not the same between all countries i.e. while products have the same WTO 6 digit HS code for the first part, the final 4 digits that countries use to define the tariff rates is usually different across each importing country/union. Is there such an integration available from anyone?

    Any help or pointers appreciated. Thanks.
     
    Posted: Jan 12, 2021 By: DefinitelyMaybeUK Member since: Jan 12, 2021
    #1
  2. JRatron

    JRatron UKBF Contributor Free Member

    96 9
    yup, you now need to be vat registered in any EU country you want to provide this B2C service to. It seems that even the distance selling thresholds where you could do up to €35k of business to an EU country (some had higher thresholds) are no longer in effect for non EU businesses.
    Possibly you can work around by setting up a company in a single EU country, registering that for VAT and effectively providing the sales from there same as you used to from the UK.

    In theory the OSS scheme will make this all massively simpler, but it isn't ready yet. I've heard this week that some EU countries are doubting they'll be ready for the 1st July deadline on this, so don't take that implementation date as gospel.
     
    Posted: Jan 13, 2021 By: JRatron Member since: Jan 30, 2006
    #2
  3. DefinitelyMaybeUK

    DefinitelyMaybeUK UKBF Contributor Free Member

    53 8
    Thanks, I'll take a look at the thresholds, but recall a €10k limit once the IOSS comes in, although that could well be delayed as you say.

    Registering in each country is not appealing, just doing the top countries causing headaches would be the way to go I suspect.

    It would good to see details of DPD's "DTP" scheme if it materialises as mentioned in their "brexitfaqs_0119.pdf" - this would seem ideal as a ‘seller paid’ model with no need for individual representation in each country - unfortunately DPD seem overloaded at the moment so best to wait a while I suspect :(
     
    Posted: Jan 13, 2021 By: DefinitelyMaybeUK Member since: Jan 12, 2021
    #3
  4. JRatron

    JRatron UKBF Contributor Free Member

    96 9
    Posted: Jan 13, 2021 By: JRatron Member since: Jan 30, 2006
    #4
  5. amdowney

    amdowney UKBF Contributor Free Member

    51 2
    I am trying to get something exported to Greece, in a muddle with the customer trying to work out what import duty he may have to pay with the HSS codes, is there a link to find out what duty each country may charge for a particular HSS code?
     
    Posted: Jan 13, 2021 By: amdowney Member since: Sep 27, 2009
    #5
  6. DefinitelyMaybeUK

    DefinitelyMaybeUK UKBF Contributor Free Member

    53 8
    For Greece, which is EU, then the common union rates apply. These are searchable on the EU "Access2Markets" page (sorry can't post a link as yet, but something like):

    trade dot ec dot europa dot eu slash access-to-markets slash en slash content

    You'll need the full 8 or 10 digit HS code where the last 2 or 4 digits *may* be different to the UK code for the same item. And of course the manufacture origin of the item. But depending on the total shipment price, the product may fall below the current* VAT threshold of €22 or duty threshold of €150.

    *There's other threads on the post 1st July changes.
     
    Posted: Jan 13, 2021 By: DefinitelyMaybeUK Member since: Jan 12, 2021
    #6
  7. amdowney

    amdowney UKBF Contributor Free Member

    51 2
    Thank you for the above, shame now as if you have made in China goods going to the EU then these do not come under the free trade deal do they so customer going to be put off by paying duty?
     
    Posted: Jan 14, 2021 By: amdowney Member since: Sep 27, 2009
    #7
  8. DefinitelyMaybeUK

    DefinitelyMaybeUK UKBF Contributor Free Member

    53 8
    Unfortunately, that's likely if price (and ease of delivery through customs) is key to the viability of your goods.
     
    Posted: Jan 14, 2021 By: DefinitelyMaybeUK Member since: Jan 12, 2021
    #8
  9. DefinitelyMaybeUK

    DefinitelyMaybeUK UKBF Contributor Free Member

    53 8
    Just seen this info from Royal Mail - very promising for sub 2kg items and looks like a strategy before and after the proposed 1st July changes. Interesting to see them shipping into Germany only pre July for a single VAT rate. Some pretty shocking DDU fees listed for countries like Belgium at €24, so making their DDP solution a good alternative! Hoping the usual couriers are putting together and publicising their plans in the coming days:

    royalmail dot com slash business slash international slash guide slash delivered-duties-paid
     
    Posted: Jan 14, 2021 By: DefinitelyMaybeUK Member since: Jan 12, 2021
    #9
  10. JPMiddleton

    JPMiddleton UKBF Regular Free Member

    281 35