Hi Greyhawk
I will try to answer you questions one by one , you seem to have a wrong understanding about IOSS.
Q:
I was planning to register for IOSS until I read that AliExpress handles IOSS, meaning AliExpress is already registered for IOSS and collects the VAT at the time of purchase, then (hopefully)p roperly remits it to the customer’s country.
A: I do not know DSers app , but if it is only dropshipping , then Aliexpresse’s IOSS number is of no use for you. Normally drop shipping works this way : you buy from dropshipper’s underlying supplier and sell it yo your customer through your checkout. You are responsible for IOSS in this case. Dropshipper should use your IOSS number for delivery. To simplify the matter , to determin VAT responsibility in the whole supply chain the most important thing is to determine who collects VAT in the checkout - so far it is you in your Shopify store.
Now, I have 5 questions related to this:
Q:
- So, do I really not need my own IOSS number anymore, or can I save myself the trouble of registering for IOSS?
A: If this is a usual dropshipping solution , then see above. You need to register for IOSS and and apply it when items come through customs.
Q:
- Whether a customer is from Germany, France, USA, Australia, or Southwestern Samoa and orders from my shop, will AliExpress automatically remit the VAT to the customer’s country?
A:
No. Moreover USA and Australia do not have VAT a\they have sales tax which is handled differently and fo above reasons ALiexpress has nothing to do with these taxes.
Q: In your experience, does the import process through AliExpress-IOSS work without issues and any potential customer repayments? Does AliExpress reliably handle this process, in your experience, or will I end up paying taxes twice…?
A: Again see above . Should be your IOSS.
Q:To avoid customs problems, does the shipping method play a role here? I read somewhere that there might be issues with ePacket (for some reason). However, I don’t see why that should be the case since the IOSS procedure through AliExpress should remain the same, regardless of the chosen shipping method or carrier. Is that correct?
A: Irrespective of the which IOSS scheme is used , as discussed above, you need to make sure that your IOSS number is properly used by the logistics operator. Most dropshippers mishandle IOSS numbers and often misuse clients IOSS numbers. Again I do not know much about this particular one. IOSS number should be properly input as part of electronic customs data set and all carriers handle it differently.
Q: How do I obtain evidence of the VAT amounts I paid to AliExpress? Will AliExpress provide invoices showing the VAT I paid? Can I get a refund for this VAT from my tax office, or am I misunderstanding something?
A: Not applicable - your purchase from AIliexpress should be B2B and you should not remit any VAT to them . You should remit VAT to your fiscal representative in EU who will settle VAT payment with EU tax authorities.
There are many other issues with dropshippers. For example they might ship an item from within EU out of their own warehouse and then IOSS is not applicable, but you might even not know about such a situation.
Do contact us at www.easproject.com and we can properly handle your VAT schemes .