Skip to content
Important VAT & Customs Notice
VAT, customs clearance, and import tax rules may vary by destination country. For international dropshipping orders, especially orders shipped to the European Union, proper VAT handling may help reduce customs delays, failed delivery, and unexpected charges for your end customers.
Yoofar is a sourcing and fulfillment service provider. We can assist with order fulfillment, shipping arrangement, customs declaration support, and logistics coordination, but sellers remain responsible for understanding and complying with their own tax obligations, including VAT, GST, sales tax, revenue tax, or other applicable taxes in their selling markets.
For EU-bound parcels, sellers may choose one of the following VAT handling options depending on their business setup.
Option 1: Use Your Own IOSS Number
If you sell to customers in the European Union, having your own IOSS number is usually the most recommended option.
Once your IOSS number is issued, please provide it to your Yoofar agent or fulfillment team. Yoofar can help assign it to your account or apply it to eligible EU parcels according to the available shipping channel requirements.
Using your own IOSS number may help:
- Reduce the risk of customs delays
- Avoid customers being charged VAT again upon delivery
- Improve the customer delivery experience
- Keep your VAT handling more consistent with your store’s tax setup
- Reduce the risk of duplicated VAT costs
Please note that your own IOSS number should be used only for orders and parcels that are eligible under the applicable IOSS rules.
Option 2: Use Yoofar’s VAT / IOSS Support When Available
If you do not have your own IOSS number, Yoofar may assist with available VAT or IOSS-supported shipping solutions for eligible EU parcels, depending on the destination country, product category, declared value, and shipping channel.
In this case, VAT or customs clearance-related charges may be listed separately in the order cost, invoice, or billing record, so that the buyer can clearly review the relevant charges.
Please note that using a supplier, carrier, or fulfillment-side VAT solution does not remove the seller’s own tax obligations. Sellers may still be responsible for VAT, revenue tax, platform tax, or other tax obligations related to their business, store, or sales revenue.
Yoofar recommends that sellers consult a qualified tax advisor to confirm the most suitable VAT arrangement for their business.
Option 3: DDU — Customer Pays VAT Upon Delivery
DDU means that VAT, customs duty, or import charges may be collected from the end customer when the parcel arrives in the destination country.
This option is generally not recommended for dropshipping orders because it may cause:
- Higher customer refusal rate
- More delivery complaints
- Longer customs clearance time
- Unexpected extra charges for the customer
- Increased refund or chargeback risk
- Poorer customer experience
If the buyer chooses DDU shipping, the buyer should clearly inform their customers in advance that local taxes, customs duty, or import charges may be collected upon delivery.
Yoofar is not responsible for customer refusal, failed delivery, return costs, or complaints caused by unpaid VAT, customs duty, or import charges under DDU service.
Important Notes
VAT rates and import tax rules vary by country and may change from time to time.
EU countries may apply different VAT rates depending on the destination country and product type. The EU IOSS mechanism is generally related to eligible low-value B2C goods imported into the European Union.
The United Kingdom, Norway, Switzerland, Australia, Canada, the United States, and New Zealand are not part of the EU IOSS system. However, they may have their own VAT, GST, sales tax, customs duty, or import tax rules.
Yoofar can help with logistics and fulfillment coordination, but Yoofar does not provide legal, accounting, or tax advice. Sellers should consult their tax advisor or accountant before deciding which VAT or tax handling method to use.
Please inform your Yoofar agent which VAT handling option you prefer before shipping EU-bound orders.
