VATupdate

Will dropshipping survive the new VAT regulations scheduled for July 1, 2021?

A very common way of operating today in the field of electronic commerce is through the system known as “ dropshipping ”. It is a sales scheme whose main characteristic is that the seller never receives or manipulates the product he is selling. When a seller that operates under the dropshipping system receives a purchase order from one of his clients through his web portal, he, in turn, orders one of his suppliers, which in many cases will be established in a third state, which makes the shipment of said goods directly to the delivery address indicated by the end customer. In this way, the seller acts as a kind of intermediary between its suppliers and its customers. In addition, in this type of operation, the end consumer, often without knowing it, is agreeing to become the importer of the goods due to their entry into Spanish territory.

Source Legaltoday

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