Dear valued customers,
From July 1st new VAT rule to EU countries will implement. Therefore packages sent to EU countries, if without IOSS, will require recipients pay VAT. If pacakges are sent with IOSS, it can be delivered to recipient successfully. Considering these factors, currently our team suggest two solutions:
- Dropshiper(our clients) provide IOSS, then you will pay IOSS Cost. In this case, dropping price you pay us will remain same.
- we provide IOSS, we pay IOSS COST on behalf of you. In this case, current dropshipping price will increase, because we have to add IOSS COST part fee. (for example, product price is $3.57, logistic fee is $6.93, dropshipping price is $10.5. IOSS is 30%(X%) of product price $3.57, that is $1.07). Please note IOSS is calculated accoding to product price only. At present there is no other way to reduce this part cost, it needs to be paid to EU tax authorities. If there is some other way to reduce it in near future, we will definitely give feedback to you.(X%) This is different for each country.
Above notification is changes of our price towards EU member countries packages. We will complete update this program on our system around June 22-23th. Please pay attention to the notifications of our system dropshippinglite.com.
NO-IOSS (Feedback from logistics companies)
- The recipient pays VAT and handling fee
- Customs clearance fee (fees vary from EU member states, about 5-15 euros per ticket)
- In DDU mode, due to the recipient’s refusal to pay VAT and high customs clearance fees, a large number of orders may be returned, and the return rate may be as high as 30%
- If the customer uses the DDU model to deliver goods, please be sure to inform the customer of the risk before delivery