The duties and the taxes listed below will be occured during our daily business:
EU VAT (for EU countries with the parcel value lower than €135):
For dropshipping only. VAT will be charged from the forwarders according to the rate (vareis from different countres). If you don't have IOSS number, the forwarders can pay it on your behalf but 2% commission will be charged.
For EU sellers, since the VAT had been charged already once you have order on your store, you can apply for the deduction with our invoice including a line of VAT amount.
For other sellers, we can state lower parcel value to minimize the VAT cost. As usual we state the parcel value as below:
- $5 when the total cost less than $15;
- $10 when the parcel cost from $15 to $25;
- $15 when the parcel cost from $25 to $35;
EU VAT (for EU countries with the parcel value higher than €135):
For bulk orders. We can use the line providing custom clearance and no VAT will be charged from our side. But normally the couriers like DHL, UPS, Fedex, TNT will not do that - they will call you and ask for your payment to release the parcel to you.
US Duty (US only with the goods value higher than US$800):
We usually state less than $800 to avoid the duty, though this regulation had been broken by Trump already 3 years ago.
US Sales Tax (US only with some states excluded):
From Alibaba and some other platforms, it requires 5% extra for the sales tax. It can be avoided if you use another delivery address in Montana or even China. Of course, we will remark your real shipping address and arrange the delivery.
GST (for commonwealth of nations):
Mainly for Australia and Canada.
For dropshipping to Canada, any parcel valued higher than CA$20 (around US$14) need to pay the GST. The only way to avoid this is to state the parcel value less than US$14.
For goods to Australia more than AU$1000, GST will be charged. So we'd better state the goods value less than that, if possible.
Platform duplicated charges:
On Alibaba and many other platforms, you'll be charged the VAT when you order from there. If you use an agent to fulfill your order, in fact, the VAT will be charged twice. The only way to avoid this duplicated charge is to use the address out of EU. Of course, we can remark the real shipping address and arrange the delivery there.
