If you are sending parcels DDP (duties and taxes paid) to EU customers, the submitted invoice has the price inclusive of VAT. Basic principle is we use the UK VAT saved to pay the EU customers VAT charged.
When the couriers calculate the EU VAT and if over £135 the duties as well, they do this calculation using the price inclusive of VAT. You will therefore be paying VAT on the VAT, and extra duties on the VAT.
Has anybody found a solution to this?
I can see a few solutions, the courier knows the orders is a VAT inclusive, and deducts it, but that requires couriers and tax authorities to implement, so not going to happen.
Alternatively an ex-VAT price is submitted from Linnworks, but we have no control over this at the moment.
Any ideas welcome.
Thanks for bringing this up, didn't even think of this. I have just had a look in Linnworks and in the Settings/Countries there is a Tax column, all the EU countries have various tax values in mine 20 21% etc. I'm just going to change all these to zero and I assume when an order comes in from that country it will be zero vat. So when you ship the order, the courier will see the ex vat amount. Hopefully I'm right in thinking this, please correct me if I'm wrong. Cheers
I will look at this as well.
What we need to know is what value is submitted to the couriers for electronic invoices.
Is it the total figure or the ex-vat figure?