Making things easy for B2C in Europe

[Freedom2023]

Is there a way for me to handle the VAT and Duty charges to my customers in Europe? I am holding my bulk stock in the UK, right now my plan is to send a smaller shipment and get it cleared into a fulfilment company in Europe and distribute to European customers from there. I would then have the initial hassle and charges of importing those regular shipments. It also incurs overheads and a lot of fufilment companies expect a certain amount of orders from you to make it worth their while.

As I am a new startup it may take me a while to get on the map and build sales. I can sell via FBA Amazon or EFN Amazon to make the consumer experience painless. I'm just wondering if there is a way for me to take away the duty and VAT issue hassle from the customer and ship direct to them from the UK?

 

[Deleted member 351022]

Most of the big courier companies offer a DDP service allowing you to pay charges for your customers. They will of course charge for the service. There is no duty to pay on shipments below €150 but VAT is always paid , just as a customer would if they made a purchase in a shop.
if you are selling through Amazon or another sales platform you need to follow their rules.

If you hold stock in the EU then you will be obligated to register for VAT at least in the country the stock is. There is a zero threshold for non EU busineses.
It is not easy for a non EU business to import into the EU either, not because it’s noT permissible but because few customs clearance agents want to act for a non EU business. also by importing in bulk your goods will be subject to import duty unless they are manufactured in the UK and can be traded under the EU - UK trade deal.

 

[Freedom2023]

Most of the big courier companies offer a DDP service allowing you to pay charges for your customers. They will of course charge for the service. There is no duty to pay on shipments below €150 but VAT is always paid , just as a customer would if they made a purchase in a shop.
if you are selling through Amazon or another sales platform you need to follow their rules.

If you hold stock in the EU then you will be obligated to register for VAT at least in the country the stock is. There is a zero threshold for non EU busineses.
It is not easy for a non EU business to import into the EU either, not because it’s noT permissible but because few customs clearance agents want to act for a

Most of the big courier companies offer a DDP service allowing you to pay charges for your customers. They will of course charge for the service. There is no duty to pay on shipments below €150 but VAT is always paid , just as a customer would if they made a purchase in a shop.
if you are selling through Amazon or another sales platform you need to follow their rules.

If you hold stock in the EU then you will be obligated to register for VAT at least in the country the stock is. There is a zero threshold for non EU busineses.
It is not easy for a non EU business to import into the EU either, not because it’s noT permissible but because few customs clearance agents want to act for a non EU business. also by importing in bulk your goods will be subject to import duty unless they are manufactured in the UK and can be traded under the EU - UK trade deal.

EU business. also by importing in bulk your goods will be subject to import duty unless they are manufactured in the UK and can be traded under the EU - UK trade deal.

Hi,

Thanks for the reply, DDP is the search term I needed. Not sure if I'm using the wrong search terms but it wouldn't have killed the UK government to put up easier to access information on all this. Most everything I learn is from You Tube or Forums.

Much appreciated,

 

[DefinitelyMaybeUK]

I'm just wondering if there is a way for me to take away the duty and VAT issue hassle from the customer and ship direct to them from the UK?

You didn't mention what cost/size orders you're looking at, but the EU IOSS scheme may also be applicable if the goods cost is 150 EUR or under. This is akin to DDP but will likely work out cheaper in overheads. IOSS is supported by Royal Mail and couriers. Royal mail also do DDP to a few countries (with no £ limit) and it's only 50p fee + normal rate. As a comparison, the UPS DDP we last did cost £7.20 + the usual in country disbursement of ~15 EUR. Of course with RM you have size/weight limitations which you don't get with a courier.

 

[Deleted member 351022]

IOSS is an optional import VAT simplification scheme scheme for goods below €150 that you can sign up to . There is however a requirement to submit VAT returns in the EU .having said that thee are companies who will do this for you - for a fee. You will need to check which option is the most cost effective for you.

If you are selling through an online platform then use of their IOSS authorisation is required. They then handle all the VAT requirements.

 

[Freedom2023]

You didn't mention what cost/size orders you're looking at, but the EU IOSS scheme may also be applicable if the goods cost is 150 EUR or under. This is akin to DDP but will likely work out cheaper in overheads. IOSS is supported by Royal Mail and couriers. Royal mail also do DDP to a few countries (with no £ limit) and it's only 50p fee + normal rate. As a comparison, the UPS DDP we last did cost £7.20 + the usual in country disbursement of ~15 EUR. Of course with RM you have size/weight limitations which you don't get with a courier.

Thank you, it would be ok for orders of two but many customers will want more than two units. Amazon really do simplify things. As much as they get vilified for destroying high streets they also make it very easy to sell from the UK into Europe.

 

[Freedom2023]

IOSS is an optional import VAT simplification scheme scheme for goods below €150 that you can sign up to . There is however a requirement to submit VAT returns in the EU .having said that thee are companies who will do this for you - for a fee. You will need to check which option is the most cost effective for you.

If you are selling through an online platform then use of their IOSS authorisation is required. They then handle all the VAT requirements.

Thanks, I did look at IOSS but customers buying direct from me will probably order in 5’s and 10’s which pushes it over the limit. Huboo seem very start up friendly.
The issue is I will be customising the colour and finish of some units in the UK to match the customers requests in the 5’s and 10’s.