Customs + VAT and export to EU / rest of the world

[Mona]

Hello,

I launch an activity in which I sell cultural products to customers (individuals) French but also all over the world.

I started to learn but I confess I'm not very clear:
- As for VAT, being autoentrepreneur I do not invoice. But what about local taxes abroad? How can this be taken into account to prevent the final customer who receives the package from paying them?

- Same for customs fees. I read that there were franchises depending on the country: is this really the case? For example for the USA, I thought I read that there was a franchise around $ 300, that means that if the package sent has a lower value, the end customer will not have any customs fees? Is there a site that shows the franchise thresholds for different countries?

 

note : it's a french company

 

Thank you !

[Patrick]

Hello,

If your invoices mention that you are exempt from VAT (which is the case for autoentrepreneurs), the VAT will normally be settled in the country of destination. This is true for companies. For individuals, I do not think that your package will be considered TTC, but it would be necessary to inquire to be sure.
For customs, customs duties are different depending on the type of product (depending on the Taric) and the country of destination.
For example, some countries may tax 0% and others 50%.
In general, the customs duties are not applied on very small values, the carrier applying a fixed price in its transport costs if you ship in DDP (delivery duty paid or free home paid).

 

That I know, but the best, it's better so ask in an experto forum.

Edited August 14, 2019 by Patrick

[Mona]

Thank you for your answer @Patrick.

For taxes, you mean that if the end customer is an individual, say in the US, he would not have to pay US local tax on the product? (So that's what I need to check?)

For the customs, we send ourselves and go through the post office, so is it also question of package? Knowing that no shipment will exceed € 50 in value, do you think we will be duty-free in just about every country (European Union, North America)?

[Patrick]

Yes, you must check the case of local VAT. For example, when sending to the DOM / TOM, people are refunded a local VAT in addition to the 20% settled.

Given the value of your shipments, I do not think you will have any problems with customs especially as the issue of the bill of lading, the post will make a customs invoice including the value of the product. But if I remember correctly, the Post does not generally take commercial parcels for abroad (to check however, and everything also depends on the number of parcels sent).

Regarding customs franchises, it is difficult to decide because they can change according to the governments (for example, the US wants to tax strongly Chinese products) ...