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Buying dropsharing webstire9/24/2023 There are different scenarios applicable when it comes to VAT in international dropshipping, especially if you are dealing with suppliers and/or customers outside the EU. Make sure you know which VAT rules apply to the products you sell. Transparency towards your customers about the shipping time can prevent unpleasant surprises. As a dropshipper, you must also state that it is not you, but another supplier that delivers the products. You must also state what rights your customer has regarding payment, delivery, service, and cooling-off period. For example, by clearly displaying your contact details on your website. It is important that you are clear about your products and services. When you sell products online, you must adhere to online sales rules. If the supplier is located in Germany, this will not be a big problem, but if the supplier is located in China, it could take several weeks for your customer to receive their order. Also, shipping times vary when dealing with international suppliers. It is therefore important to make clear agreements with your international supplier about the transport, customs clearance costs, and the attached documents. Most likely, your Dutch customer is not aware of having to pay customs clearance costs to the party making the delivery, having bought the product from a Dutch online shop. Is your dropship supplier located outside the EU? If so, the party importing the product will have to pay import duty and VAT. ![]() It is important to find out if international dropshipping is commercially viable for you and your products. International dropshipping comes with possible obstacles, such as additional delivery time, higher shipping costs, agreements regarding order returns, and customs formalities with shipments outside the EU. Working with international dropshipping suppliersĬollaborating with international suppliers is also common. ![]() Tax Administration to get data of sellers on platformsĮuropean digital platforms must pass on information on sellers who make money through their platforms to the Tax Administration. Also, arrange returns with your supplier. Therefore, ensure clear and simple return options. Your customer must be able to return their purchase through you. This starts from the moment your customer has received the product. Your customers are entitled to a cancellation period of at least 14 calendar days.If you sell counterfeit products, you are liable. Check carefully that the products you sell do not infringe on the trademark rights of others.As a result, competing online shops may decide to offer the same products with very low selling prices in exchange for lower product margins. Be aware that dropship suppliers often have multiple agreements with other online shops.For example, if it was damaged in transit. You are also responsible if there is something wrong with the delivered product.Therefore, always make clear agreements with your dropship supplier about the warranty, the order return policy, the shipping time, and the availability of the stock. It could happen that, due to the fault of your supplier, the order does not reach the customer or the order is damaged. You are responsible for solving problems that may occur with the shipment of the products.Read our checklist How to start a business in the Netherlands before you start as an entrepreneur. To start a business in the Netherlands, there are general conditions you have to fulfil. General rules for starting a business in the Netherlands You also do not have to deal with overstock. You can easily expand your assortment, since you are not bound to an expensive inventory. ![]()
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