Customs and Import VAT: What Happens at the Border

Every dropshipper who imports goods from outside the EU must deal with customs. Understanding what happens at the border is essential for avoiding surprises, delays, and angry customers.

The Import VAT Process
When goods arrive from a third country (e.g. China), they pass through customs in the EU. Import VAT is calculated based on the value of the goods + shipping + any duties.

If the seller does not use IOSS, the courier (DHL, FedEx, UPS, CTT, La Poste) will pay the VAT on behalf of the customer and charge them upon delivery, often with an additional handling fee.

Example

  • A €90 product shipped from China to Portugal.

  • Without IOSS → CTT (Portugal’s postal operator) collects VAT + €2.50 handling fee upon delivery.

Legal Source:

Conclusion
For dropshippers, transparency is key: make sure customers know VAT will be collected at delivery unless IOSS is applied.

Want smoother deliveries and fewer customer complaints? We’ll show you how to manage VAT at import.

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