Small Business Shipping To EU

[SimWil]

Hi,

We run a small business that sells merchandise from our online store. Until now all of our customers have been in the UK but we have received a couple of orders from abroad (Ireland) and I have realised that, if we send it by courier (we use DPD) it is sent without tax being paid so the customer will have to pay the tax at their end and then collect the order too.

Is there a way to avoid this? I have read on some forums that some people send their orders as gifts to avoid this but I'm not sure I believe that. Is there a way for us to pay the tax in advance so it gets delivered directly to the customer?

I apologise if this has been answered on another post but I have tried to search for an answer and I couldn't find anything.

Thanks, Simon.

 

[AlanJ1]

You will need to get an IOSS number which allows you to pay it yourself.

However, there are still some countries who will charge the customer the VAT and or a handling charge.

 

[Customs Geek]

Hi,

We run a small business that sells merchandise from our online store. Until now all of our customers have been in the UK but we have received a couple of orders from abroad (Ireland) and I have realised that, if we send it by courier (we use DPD) it is sent without tax being paid so the customer will have to pay the tax at their end and then collect the order too.

You can sign up for IOSS which is voluntary. This is for shipments below €150 only . You would register in the EU and charge your customer their local VAT . You then submit a monthly return and pay over the VAT collected. The scheme then distributes theVAT to the relevant country. This obviously comes at a cost.
You could also just ask the courier to charge you for any taxes rather than the customer. They do however charge extra for this .

Is there a way to avoid this? I have read on some forums that some people send their orders as gifts to avoid this but I'm not sure I believe that. Is there a way for us to pay the tax in advance so it gets delivered directly to the customer?

goods below €150 are relieved of duty but not VAT . If you think about it the customer would pay VAT if they walked into a local shop and purchased the item so it’s no different. You just could just make sure it’s clear tax will be charged at import on your website.

The gift relief is for goods between two private individuals and the threshold is quite low - equivalent to £39.
I would never recommend someone does something not legal so as you are selling things to customers it is not a gift.
The authorities are not daft and can spot the difference.

 

[charcinders]

Is there a way to avoid this? I have read on some forums that some people send their orders as gifts to avoid this but I'm not sure I believe that. Is there a way for us to pay the tax in advance so it gets delivered directly to the customer?

Hi Simon,
I book my overseas shipments through Transglobal, and when booking the shipment their website often (always?) asks who will pay the customs fees and taxes, the recipient or the sender. You may still have to sign up for IOSS, I'm not sure, but it's worth a try.

- Chris

 

[Customs Geek]

Just so you are aware IOSS is an option for businesses importing low value goods via their own website into the EU it is not a requirement. If you are only doing a few shipments it’s unlikely to be something you would find cost effective.

 

[DefinitelyMaybeUK]

we have received a couple of orders from abroad (Ireland)

If you use a Royal Mail business account and Click and Drop, then you can send DDP to Ireland (and a few other countries) for minimal overhead [1], compared to a courier [2], assuming your parcel is no more than 2kg and meets the size limits [3], and there's no €150 restriction, see:

https://www.royalmail.com/business/international/guide/delivered-duties-paid-ioss

You need to ask RM to add the DDP service (they call it "PDDP") to your account as they need to retrospectively bill you the 50p fee, plus any VAT (and duty for >€150 orders). It's a very good service and has been especially quick to France.

For Ireland, make sure your goods meet the An Poste restrictions, which and over and above the usual items, there's a list on the RM site.

[1] the DDP tracked service is typically only a couple of quid more, plus 50p handling;
[2] a courier will typically bill you the usual receivers disbursement fee (~ €15+), plus their own DDP handling fee (~ £7+);
[3] RM have just announced a new increased 30kg / medium parcel international service, but I haven't looked as yet whether this can be applied to the DDP service;

 

[DontAsk]

Deleted

 

[marco84]

I can provide some suggestions if shipping from Asia or China.

I don't have any business experience in shipping from Ireland. Has your problem been resolved now? Can you analyze it with us

 

[WebCider]

We use Parcel2Go.com for shipping overseas, and it always give you the option to pay tax by you or by the receiver. Hope this is helpful.