- Original Poster
- #1
Hi,
UK VAT Registered business here, currently selling low value products into the EU using IOSS. I collect EU VAT at the appropriate rate and remit this to the EU every month via my IOSS intermediary. All working fine.
I'm now exploring additional options for DDP and have a query.
Lets say for example......
At my online checkout I itemise the following
Product cost
Shipping Cost (DDP Service)
Import VAT (I am precalculating and passing on the import VAT cost to the customer)
Import Customs Fees (I am precalculating and passing on the clearance fees to the customer)
Import Duty (I am precalculating and passing on the import duty to the customer)
I get paid all of the above from the customer, and I ship the item using a Courier DDP Service. The Courier bills me back after shipment for the Import VAT, Import Duty and Clearance Fees.
Great, the customer has their product with no hastle at customs.
My question relates to what I now put on the commercial invoice sent to the buyer. Can they use the invoice to reclaim the import VAT they may be entitled to in their own country? They've indirectly paid import VAT via myself and my courier. Or is it the case that any Duty and VAT costs that have been passed onto a buyer from the seller in a DDP transaction become unrecoverable and just part of the cost of buying.
What do others do in this situation, Do you itemise Duty and VAT to your buyers when shipping DDP, or do you just include it in a single inflated shipping cost, and not intemise?
Do I need to include a statement on any commercial invoice and checkout that any import VAT/duty passed onto the buyer in the total order price cannot be reclaimed?
UK VAT Registered business here, currently selling low value products into the EU using IOSS. I collect EU VAT at the appropriate rate and remit this to the EU every month via my IOSS intermediary. All working fine.
I'm now exploring additional options for DDP and have a query.
Lets say for example......
At my online checkout I itemise the following
Product cost
Shipping Cost (DDP Service)
Import VAT (I am precalculating and passing on the import VAT cost to the customer)
Import Customs Fees (I am precalculating and passing on the clearance fees to the customer)
Import Duty (I am precalculating and passing on the import duty to the customer)
I get paid all of the above from the customer, and I ship the item using a Courier DDP Service. The Courier bills me back after shipment for the Import VAT, Import Duty and Clearance Fees.
Great, the customer has their product with no hastle at customs.
My question relates to what I now put on the commercial invoice sent to the buyer. Can they use the invoice to reclaim the import VAT they may be entitled to in their own country? They've indirectly paid import VAT via myself and my courier. Or is it the case that any Duty and VAT costs that have been passed onto a buyer from the seller in a DDP transaction become unrecoverable and just part of the cost of buying.
What do others do in this situation, Do you itemise Duty and VAT to your buyers when shipping DDP, or do you just include it in a single inflated shipping cost, and not intemise?
Do I need to include a statement on any commercial invoice and checkout that any import VAT/duty passed onto the buyer in the total order price cannot be reclaimed?
