Confused about VAT rules for UK and EORI requirements for Australia in dropshipping?

Confused about VAT rules for UK and EORI requirements for Australia in dropshipping?

Greyhawk
Shopify Partner
14 0 0

 

I want to send goods to Australia and the UK as a dropshipper, and I have a question for each destination. 🤓


For the UK:

 

It is said that as a dropshipper in the EU selling to customers outside the EU, you generally don't have to charge VAT (Value Added Tax) (Source: this Shopify article).

 

However, I've read elsewhere that as an EU seller, you must charge 20% VAT when selling to the UK.

 

Is this true, and why is it so?


For Australia:

 

I read the following:

 

"If you commercially ship goods to Australia, you need an EORI number. Your shipment must include a complete commercial invoice."

 

Is this automatically handled by AliExpress (EORI number and commercial invoice), or do I need to take specific steps for this? Does AliExpress include commercial invoices with shipments?

 

On the other hand, I've read that the EORI number is only needed when exporting goods from Australia, not when importing goods to Australia. Which one is correct?

 

Thank you and best regards! 🤗

 

Reply 1 (1)

Shipant
Explorer
64 4 7

For GB and AU you can ignore the VAT at the beginning, EORI is for packages ship to EU countries required to pay tax, if you dropship from Aliexpress to GB and EU the sellers could handle the VAT issue easily, or you find a Chinese 3PL to help you ship from China to EU with tax prepaid solution, thats easy.

ShipAnt.com Professional Chinese dropshipping agent Xforwarder.com