Aliexpress buying as a business from EU VAT. - Page 1
Forum section: electronics / general

author: wraper
author_rank: Unknown
timestamp: September 16, 2021, 08:15:20 pm
content: Had anyone recently purchased something from Aliexpress as a VAT registered business and figure out how to do it properly? With this new EU VAT collected by a foreign platform stuff since July, now VAT gets collected automatically for <150 EUR purchases. And I'm quite sure I won't get a proper invoice for a company by default, and in result will not get the VAT back. Supposedly there should be a "Buyer Tax Information Collection" setting which will disable VAT collection. And which I cannot find for living. I even created a new account since an old one has region automatically set as Russia for some unknown reason, did not help whatsoever even though region is now properly set.

author: MT
author_rank: Super Contributor
timestamp: October 05, 2021, 11:02:53 pm
content: Its a bit strange, Ali basically says you need to pay Vat twice then claim back one of the Vat's?! Where is the evidence Ali actually pays the Vat to the foreign gov in these days of economic warfare? I rather wrestle with my customs then Ali or a transporter of goods for the Vat.https://servicehall.aliexpress.com/knowledgeDetail?hcAppId=1248&hcFromCode=Xn2Tk1tb7&hcSessionId=26-1248-296201f6-fbb4-4e3e-970c-8e59d3a4921f&spm=service_hall.24300484.category.587912&knowledgeId=587912&categoryId=21039537Ali wants you to send in your Vat registration maybe that then is linked to your account and enables anti Vat selection?https://servicehall.aliexpress.com/knowledgeDetail?hcAppId=1248&hcFromCode=Xn2Tk1tb7&hcSessionId=26-1248-296201f6-fbb4-4e3e-970c-8e59d3a4921f&spm=service_hall.24300484.category.587907&knowledgeId=587907&categoryId=21037511EDIT:In July 1 2021 EU made some new rules, called "Import One Stop Shop (IOSS)" if a seller register for IOSS they can then add VAT to the selling price.Apparently as i interpreted it it's your customs who declare/or not if a particular seller is ok for IOSS, you as a buyer if the seller included VAT have toget the documentation from the seller they "actually" paid the VAT to your gov. The more i read about it and folks experiences from it quite clear thiscan/is be a double taxation trap , it all depends on the seller.

author: wraper
author_rank: Unknown
timestamp: October 06, 2021, 01:22:10 pm
content: Quote from: MT on October 05, 2021, 11:02:53 pmIn the case of selling platforms like Aliexpress, it's a platform who collects the VAT and deals with IOSS. Seller only needs to ship the item properly. From what I further found, for that tax collection setting to appear, you need to have a business account. And there is no straightforward way to do it, except if you live in a few countries from which Aliexpress allows you to register aseller account(Italy, Spain, Russia and Turkey). But dropshipping tool DSershttps://www.dsers.com/blog/eu-vat-reform/supposedly offers to upgrade your Aliexpress account to Business buyer if you contact their support.QuoteThen I found out that Aliexpress also have their own "AliExpress Dropshipping Center". Well I applied to that, signed an agreement. Now I have their dropshipper center available, still nowhere to enter my business details.

author: MT
author_rank: Super Contributor
timestamp: October 06, 2021, 03:01:20 pm
content: Quote from: wraper on October 06, 2021, 01:22:10 pmWhen i first read about IOSS yesterday i also presumably thought Ali was the seller collective "VAT payer" after all its their platform but the more i read i see "buyers" complaining about "sellers" on Alinot declaring VAT been paid , there is even cases where sellers put their IOSS number on the outside of the parcels despite that the package got hold in customs who then claims they cant find the sellers IOSS registration number (supposedly registered with Ali to begin with) and want VAT pay'd by the purchaser!? I.e i have no idea whats going on, perhaps just hapen's in some countries and not others.None of that should happen if Ali is the Vat collector. Ali claims Vat is declared on the invoice.QuoteOk there we go, its linked to the registration as i previously suspected and double taxation is an issue for both dropshippers and regular private buyers it seams.Dont get why one has to go through Dser's to get Ali working?!

author: peter-h
author_rank: Super Contributor
timestamp: October 06, 2021, 04:46:28 pm
content: Surely, B2B is zero-VAT (and zero-duty) atallinvoice values. I do this in my business all the time.The UK VAT collection rules (£35 to £135 band) are for B2C (customer is a retail consumer). It is a totally dumb cock and bull scheme which I predict will eventually collapse because- most mainland European retail online outlets have stopped selling to the UKat all invoice values- the workaround is to sell via a platform which does it for you (Amazon and Ebay - both deeply unsatisfactory for various reasons)- if the seller "just ships" the item, it still gets delivered to the customer (and import VAT is collected, with the usual ripoff surcharge)It is not just EU sellers BTW. It is US and others as well.That some sellers don't supply a decent invoice, has always been a problem, especially with sellers in the 3rd World (China, etc); many of those businesses are fake companies anyway, run for tax evasion.I have not used Aliexpress much so don't know... I would expect them to implement it same as Ebay.

author: MT
author_rank: Super Contributor
timestamp: October 06, 2021, 07:01:23 pm
content: Quote from: wraper on October 06, 2021, 01:22:10 pm2.4 Benefits, features and functions available to a Member may vary for different countries and regions. No warranty or representation is given that a particular feature or function or the same type and extent of features and functions will be available.Ali disclaimer! Would be surprising if Ali would have a different setup for Latvia!

author: MT
author_rank: Super Contributor
timestamp: October 06, 2021, 09:59:49 pm
content: Besides VAT each country in EU have its own so called package "handling fee" in many casesit is the national postal service who has been assigned by gov to handle customs , peculiar howit can vary so much for the so called "united" EU, examples:Portugal:2€ for orders up to 150€, and 4€ to orders between 150 and 1000€.Sweden:7.5Euro below 150Euro and 12.5Euro above 150Euro limit.Denmark:21 Euro.Slovakia:2euro or 4euro or 9euro depeending on what no one knows.Belgium:15euro for anything under 150 euro and 30euro for above.Italy:2€ for orders of 22€ and under 5€ for orders 22.01€ to 150€ 5€ pluscustom duties for items 150€ to 1000€.

author: wraper
author_rank: Unknown
timestamp: October 07, 2021, 08:46:18 am
content: Quote from: MT on October 06, 2021, 03:01:20 pmVAT was paid by Aliexpress, it's sellers who screw up reporting that VAT was paid when shipping, and customs unwilling to do anything about it even though importer (buyer) has a VAT invoice.

author: MadScientist
author_rank: Frequent Contributor
timestamp: October 07, 2021, 08:53:28 am
content: What you are talking about is DDP , delivery duty paid , this is a eu vat scheme that allows exporters to the EU to prepay vat. It has a limit of I think €150If you are a vat registered business the sellers platform must recognise this and not apply vat. You will then pay customs duties, handling charges and vat in your own country on immediate importreclaiming the DDP vat is not possible , whether you are vat registered or not.DDP works well from the uk to Ireland for example with amazon.co.uk deliveries back to 2 days as a result of DDP

author: wraper
author_rank: Unknown
timestamp: October 07, 2021, 09:03:27 am
content: Quote from: MadScientist on October 07, 2021, 08:53:28 amAnd in a nutshell the question was how to do that?

author: Pinkus
author_rank: Frequent Contributor
timestamp: October 07, 2021, 11:25:27 am
content: Similar here: according to AliExpress there should be a page 'Buyer Tax information Collection’ at 'My AliExpress' or at the account settings, but this page is missing (at least at my account). AliExpress says:You can update your VAT information to verify your account as business buyer. After account verified, you can order without tax in AliExpress.This page was never available to me, thus I would need to pay VAT which I cannot claim back. Consequently I did not order anything at AliExpress since May - usually I did order something every week.

author: MT
author_rank: Super Contributor
timestamp: October 07, 2021, 03:12:49 pm
content: Quote from: wraper on October 07, 2021, 08:46:18 amObviously , but point are, seller wrote a IOSS number on package. Real or fake, for unknown reasons, whether or not the IOSS number correlate with Ali invoice story dont tell.

author: wraper
author_rank: Unknown
timestamp: October 07, 2021, 04:25:01 pm
content: Quote from: MT on October 07, 2021, 03:12:49 pmAs I understand, seller must inform a shipping company in some way, not just write an IOSS number on the package. Royal mail as examplehttps://www.royalmail.com/business/international/guide/delivered-duties-paid-iossQuote

author: MT
author_rank: Super Contributor
timestamp: October 07, 2021, 08:16:50 pm
content: Quote from: wraper on October 07, 2021, 04:25:01 pmOfcourse they must, i assumed in the "customs deny case" that the IOSS number was on the package "transport label" and is the same IOSS number as on the VAT invoice but the story dont tellwhy customs said the IOSS number didnt exist. Is there big differences between Ali seller transport labels and invoices?https://www.want.nl/wp-content/uploads/2017/10/aliexpress-package-a.jpg

author: wraper
author_rank: Unknown
timestamp: October 07, 2021, 08:24:14 pm
content: Quote from: MT on October 07, 2021, 08:16:50 pmWhat's written on the label does not mean anything. It must be reported to the shipping company and handled differently than non IOSS shipments.

author: MT
author_rank: Super Contributor
timestamp: October 07, 2021, 08:30:27 pm
content: Dropship folks on amazon eseller forum talks about they prints IOSS number on transport label.https://www.avalara.com/vatlive/en/vat-news/germany-to-miss-ioss-july-2021-launch-date.html