Suzanne, I thank you very much for your tips and invaluable practical experiences! You have truly helped me a lot. And yes, I actually have another question, which I’ll send to you via private message. In any case, thank you!
Topic summary
Main issue: Whether AliExpress covers EU IOSS (Import One‑Stop Shop) VAT for a Shopify/DSERS dropshipping store, and implications for EU/US compliance.
Key clarifications:
- IOSS applies to imports ≤€150 into the EU. Liability depends on who collects payment. If the sale happens in your own store, you are the seller of record and must use your own IOSS and report VAT. AliExpress’s IOSS applies only when the buyer pays via AliExpress checkout (AliExpress as marketplace/OMP).
- USA/Australia use sales tax, not VAT; AliExpress does not handle these for your independent store.
- If AliExpress charges “VAT” on your B2B purchase, it generally isn’t recoverable as input VAT under IOSS; treat it as cost. This can cause double payment and a customs–IOSS mismatch (you report VAT, but no imports appear under your IOSS).
- Shipping method (e.g., ePacket) matters less than correct electronic transmission of your IOSS; carriers handle this differently and errors are common.
Practical outcomes/ideas:
- Using AliExpress’s IOSS for your store’s orders is described as non‑compliant/impractical. Legally sound options: hold inventory and ship yourself, or use an external shipping agent (outside the EU) who declares your retail price and your IOSS.
Other notes:
- Screenshots showing AliExpress charging tax are central to the discussion. Obtaining proper invoices/IOSS use via AliExpress is reported as difficult. The HS/HTS code question remains unanswered. Discussion remains open, no definitive resolution.