Hi everyone,
I need urgent help with VAT for my B2B dropshipping business. I’m based in Germany, sourcing products from a manufacturer in China, and shipping them DDP (Delivered Duty Paid) directly to my B2B customers across the EU. I don’t hold any warehouse — goods go straight from China to the customer.
I pay the Chinese manufacturer for the goods, shipping/logistics, and other costs combined, then invoice my B2B customer with my margin added.
My main question: What VAT should I charge on my invoice to my EU B2B customer, and who should be the importer of record?
I’ve spoken with a tax lawyer but I’m still getting conflicting/unclear answers. If anyone has actually run this kind of setup — sourcing from China, DDP direct to EU B2B customers — I’d really appreciate hearing how you structured the invoicing and customs side.
Thanks in advance!
Hey @Haris251 ,
This is a fairly complex VAT and customs scenario, and unfortunately there isn’t a single answer that applies to every DDP shipment.
The VAT treatment depends on several factors, including:
Who is acting as the Importer of Record (IOR).
Which EU country the goods are imported into.
Where the taxable supply is deemed to take place.
Whether the transaction qualifies for a reverse charge or requires a local VAT registration.
If the shipment is genuinely DDP, the seller (or their customs representative) typically takes responsibility for import formalities and any import VAT. However, that doesn’t automatically determine what VAT should appear on your sales invoice to the B2B customer.
Because you’re selling from Germany to B2B customers across multiple EU countries with goods shipped directly from China, this is exactly the type of scenario where the invoicing and VAT treatment can vary depending on the structure of the transaction.
I’d recommend speaking with a VAT specialist who regularly handles EU cross border imports and DDP transactions, rather than relying on general tax advice. It would also help if you could clarify:
Which EU countries your customers are located in.
Who is currently listed as the Importer of Record on the customs declaration.
Whether your customers provide valid EU VAT numbers.
Those details will have a significant impact on the correct VAT treatment.
If you found my reply helpful, feel free to mark it as the accepted solution so it can help other merchants following this discussion.
Thank You !
Hi there @Haris251
DDP complicates the customs and vat side of things because the import VAT can be accounted for where the importer of record decides. In the case of B2B EU sales, VAT rules may differ depending on the customer’s country of residence, VAT registration status and the country of importation of the goods.
I don’t like the idea of setting a single VAT rule for the entire EU. Draw a flow for each destination, make sure who is listed as the importer on the customs paperwork and make that line up with your invoicng. Your tax attorney should be able to vet the particular structure once those details are penned down.