Avoiding Double Taxation in Cross-Border E-commerce

One of the most common mistakes in dropshipping is double taxation: VAT being paid both by the seller and again at import by the customer.

How It Happens

  • Seller charges VAT at checkout (incorrectly).

  • Customer also pays VAT at import when courier delivers the goods.

  • Result: customer pays twice, margins collapse, and refunds are complicated.

The Solution
The EU VAT Directive makes clear that the place of supply is outside the EU when goods start their journey abroad. Sellers must configure their systems accordingly.

Legal Source:

Conclusion
Avoiding double taxation is not just about compliance — it’s about protecting profit margins and customer trust.

Think you may be double-paying VAT? Our team can audit your flows and recover what you overpaid.

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