How to handle international shipping duties after Brexit?

tilletts
Tourist
19 0 2

We are a seller in the UK trying to ship internationally to Europe once again after the Brexit mess. We are using Royal Mail and have a DDP rate card from them. We currently have our checkout set-up to collect duties. Once we have charged the customer, who do we pass the duties onto? Does Royal Mail send us a invoice for the amount?

 

Thanks

Replies 3 (3)

Transcy
Shopify Partner
285 19 83

Hello @tilletts ,

 

If you are using Royal Mail and have a DDP (Delivered Duty Paid) rate card, you are responsible for paying the import duties and taxes on behalf of your customers for shipments to the EU.

When you charge your customers for these duties and taxes at checkout, you should retain these funds to cover the costs of duties and taxes that will be due on the shipment.

Royal Mail should provide you with an invoice for the import duties and taxes that are due on the shipment. You will need to pay this invoice directly to Royal Mail within the designated timeframe.

 

Let us know if you have any further questions.

 

Have a nice day,

Transcy team.

Transcy - The #1 Translation and Currency Converter
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TrueProfit_Jen
Shopify Partner
40 1 9

Hello @tilletts ,

 

In your case, you're responsible for the duties, Royal Mail will send you the invoice.

To pay the duties and taxes to the relevant tax authorities, you will need to file the appropriate paperwork and make the necessary payments. Royal Mail may offer assistance with this process or may provide you with information on how to do it yourself.

It is important to ensure that you are complying with all applicable laws and regulations when shipping internationally, including those related to customs duties and taxes. If you are unsure about how to proceed, you may want to consider consulting with a legal or tax professional.

 

Wish you all the best.

Jen from TrueProfit

 

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TeemuEAS
Shopify Partner
121 1 22

Hi Tilletts, 

 

If your products are below 150€ (VAT zero without shipping or any other fees), you can take advantage of the new VAT scheme, IOSS. With IOSS you can collect the VAT at checkout (no duties for below 150€ goods), and use much cheaper delivery methods than the most expensive DDP. Of course the combination of DDP and IOSS to support ALL shipments 🙂

 

If this sounds like something that would work for you, you can find more on the Shopify application here: https://apps.shopify.com/eas-eu-compliance

Naturally we are ok with installing and configuration of our app for free. 

 

 

EAS EU & UK Compliance app is a fully automated European VAT solution for Shopify.