Dropshipping and customs
Customs and tax obligations specific to the stockless online sales model where the supplier ships directly to the end customer.
Dropshipping and customs
Dropshipping is an online sales model where the seller does not hold stock. When a customer places an order, the supplier (often based outside the EU) ships directly to the end consumer. This model raises specific customs and tax issues.
Customs obligations
When the goods are shipped from a third country to a consumer in the EU, there is an importation. The dropshipper, as a seller, can be considered the alleged importer or supplier depending on the sales pattern.
VAT and dropshipping
Since the 2024 Finance Law in France, dropshippers facilitating sales of imported goods are subject to the same VAT rules as marketplaces. They must collect and remit VAT via IOSS for shipments ≤ 150 EUR.
Risks of non-compliance
The dropshipper is responsible for the conformity of the products sold (CE marking, European standards, REACH, etc.) even if he never physically handles the goods. He is also responsible for EPR (Extended Producer Responsibility).
Best practices
Check regulatory compliance of products, ensure correct tariff classification, register with IOSS if eligible and maintain supporting documentation.