EU Shipping Options

The pros and cons of DDU shipping terms

• No additional administration
• No additional charges for the sender

• Shipments likely to experience delays in customs
• The receiver will face extra charges (VAT) on delivery
• An admin/clearance fee will apply
• Additional costs incurred if the receiver does not pay and the shipment is returned
• Some services are restricted (e.g. DPD)

The pros and cons of DTP/DDP shipping terms

• The receiver does not have to pay any additional charges on delivery
• Faster customs clearance
• No additional administration as duty and tax billed at the time of booking

• Reversal fee will apply
• Some DTP services, such as Landmark Global, are available for IOSS-registered shippers only.

The pros and cons of the Import One Stop Shop (IOSS) – B2C only

• Full transparency of total cost for the receiver
• Faster customs clearance
• Full service availability, including our most economical services (Landmark, DPD)
• One single monthly VAT return

• Additional costs to appoint an EU-based intermediary to manage VAT return
• Can only be used for low value shipments (less than €150)

 

Are you selling goods through an online marketplace?

Online marketplaces are obliged to collect and file VAT on all sales made to EU customers through their platform (for goods valued up to €150). You should provide the marketplace’s IOSS number when making your booking, so that your recipient is not charged import VAT.

The pros and cons of EU Fulfilment

• Less paperwork as stock will be imported in bulk avoiding the need for multiple customs invoices
• Faster transit times across Europe
• Better rates to most EU destinations which offset cost of sending stock to Germany
• Receiver pays VAT at the point of sale
• Not limited to low value shipments

• Additional administration (German VAT, UOSS* registration)
• May require professional tax services, adding to cost
• Goods still subject to the same distance sales VAT rules as sending from UK (no threshold for VAT obligations)**

*Or VAT registration in each EU country in which goods are sold. **If trading as a German entity and goods are sold through the German business, the intra-EU distance sales threshold would then apply. This would mean that VAT is only payable at the destination country if total cross-border sales to the EU exceed €10,000 per year. If sales are below this threshold, German VAT would apply and would need to be accounted for through a German VAT return. It is unlikely that businesses choosing EU fulfilment would be selling below the threshold, however.