- Dropshipping Structure and Responsibilities: In a dropshipping model, online retailers do not hold inventory but remain responsible for VAT and customs compliance, including processing returns and managing tax obligations for goods sold to end customers.
- EU VAT Regulations: Each EU country sets its own VAT rates and compliance duties, impacting both EU and non-EU retailers. Non-EU retailers must register for VAT in EU member states when selling directly to EU consumers, without a sales threshold.
- One-Stop-Shop (OSS) Benefits: Retailers can simplify VAT compliance through the OSS scheme, allowing registration in one EU member state for intra-EU sales. This reduces bureaucracy and compliance costs, with options for both EU and non-EU businesses to streamline their VAT obligations.
Source 1stopvat
