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Dropshipping EU new vat rules?

Adde9400

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Hello!

I run a ecommerce store. My supplier in China sends The goods directly from China to sweden via Luxemburg. I am very scared about the new vat rules that comes in place 1st july this year. I do not want my customers to get any customs invoices sent to them before they get The package. There is so little information on The Web about this. My supplier in China says they havent heard anything about it. Anyone else in The same situation as me? What do i have to do or What will be The Change? Very thankful for answers.
 
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Walter Hay

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It looks like you are dropshipping. If so, you are sharing the same problem that worries many thousands of dropshippers around the world. Individual shoppers will be charged duty plus tax unless they come under the DeMinimis rules for exemption.

I am puzzled as to why the goods are shipped via Luxemburg instead of direct to Sweden. Under DeMinimis rules any shipment arriving in Sweden valued at less than SEK 1600.00 will enter duty free and tax free.

If the shipment via Luxemburg is an attempt to avoid duty and VAT, that is pointless.

Walter
 

Adde9400

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Feb 5, 2021
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Hello!

Yes i am dropshipping. In March 2018 the postal service in Sweden introduced a new taxing system. Meaning that ALL packages that comes into sweden from outside EU are liable to pay VAT and a handling fee, sometimes the VAT is only like 2-3kr and the handling fee is 100kr. The solution is to ship the goods via Luxemburg where they charge no VAT for low value packages.

I think i have managed to figure out how it will work after july 2021. My supplier will be the deemed supplier and they will charge 20% VAT on all products that i buy from them. They will be registered to EU where they list all dropshippers they work with so my business will have a unique code that they print to the package, wich gets scanned when entering EU, that tells EU that my packages are paid VAT on and then released.
 

Adde9400

PARKED
User Power
Value/Post Ratio
0% - New User
Feb 5, 2021
3
0
It looks like you are dropshipping. If so, you are sharing the same problem that worries many thousands of dropshippers around the world. Individual shoppers will be charged duty plus tax unless they come under the DeMinimis rules for exemption.

I am puzzled as to why the goods are shipped via Luxemburg instead of direct to Sweden. Under DeMinimis rules any shipment arriving in Sweden valued at less than SEK 1600.00 will enter duty free and tax free.

If the shipment via Luxemburg is an attempt to avoid duty and VAT, that is pointless.

Walter
Hello!

Yes i am dropshipping. In March 2018 the postal service in Sweden introduced a new taxing system. Meaning that ALL packages that comes into sweden from outside EU are liable to pay VAT and a handling fee, sometimes the VAT is only like 2-3kr and the handling fee is 100kr. The solution is to ship the goods via Luxemburg where they charge no VAT for low value packages.

I think i have managed to figure out how it will work after july 2021. My supplier will be the deemed supplier and they will charge 20% VAT on all products that i buy from them. They will be registered to EU where they list all dropshippers they work with so my business will have a unique code that they print to the package, wich gets scanned when entering EU, that tells EU that my packages are paid VAT on and then released. Then like once a month my supplier will pay all the VAT to EU.
 
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