Where to declare taxes with dropshipping

New Member
1 0 0

Hi all,

I am planning to open a company in Estonia and have an online shop that sells products in Italy.

I'll use Shopify and Oberlo, so most of the products will be shipped from China.

 

Estonia told me that I'll have to declare the IVA (VAT) to Italy, but I won't be able to apply any IVA, given that will be the supplier sending directly to the customer.

Has anyone a similar situation?

 

This is the message I've received: 
If your Estonian company sells physical goods and does not have “taxable sales revenue in Estonia” (the physical goods you are selling, are not sold inside Estonia or the physical goods you are selling are never physically in the Estonian territory) then you will not be liable to register for VAT in Estonia. Most likely you will have to register your Estonian company for VAT purposes in the country where you will be storing/selling your goods (Italy). Therefore we strongly advise you to check with Italian tax authorities or tax consultant what are the requirements and thresholds for VAT registration.

 

Thanks!

0 Likes