1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Uk Drop shipping - What taxes to pay

Discussion in 'Dropshipping & Wholesale Hookups' started by KraftyKyle, Jan 4, 2012.

  1. KraftyKyle

    KraftyKyle Jr. Executive VIP Jr. VIP Premium Member

    Joined:
    Aug 13, 2008
    Messages:
    1,942
    Likes Received:
    4,608
    Gender:
    Male
    Location:
    Unknown
    A simple search would do you well. You're asking for the most basic aspects of dropshipping.
     
  2. kismatconnection

    kismatconnection Registered Member

    Joined:
    Jun 8, 2011
    Messages:
    87
    Likes Received:
    9
    Hi,

    I would appreciate it if I could have some help regarding some tax related questions. I am interested in dropshipping in the uk.

    Would I need a tax ID?
    Also would I have to pay sales tax and custom tax etc can anyone explain whole process in detail ?

    Thanks
     
  3. kismatconnection

    kismatconnection Registered Member

    Joined:
    Jun 8, 2011
    Messages:
    87
    Likes Received:
    9
    yeah all basic aspects :) and if anyone could enlighten me about rules and regulations in UK about dropsipping will highly appreciate that :)
     
  4. stressfree

    stressfree Senior Member

    Joined:
    Aug 28, 2007
    Messages:
    1,116
    Likes Received:
    233
    Don't be stupid..NONE!
     
  5. Cubic Media

    Cubic Media Newbie

    Joined:
    Jul 25, 2011
    Messages:
    18
    Likes Received:
    3
    All depends on where your getting the stock from, in basic terms if you are dropshipping direct your customer from out of EU, AND you make it clear they are liable to any import tax/duty than you will not pay anything, but tax on profit at end of the year. Assuming yo take over £5k
     
  6. benzy

    benzy Power Member

    Joined:
    Nov 12, 2011
    Messages:
    790
    Likes Received:
    59
    Occupation:
    Trading
    Location:
    UK
    yeh this really depends on the scale of your business and structure. If your doing this in your own name, are not registered as self employed, you dont plan on declaring anything and your just doing this as a small sideline you shouldnt have to worry about being taxed on your income.

    In terms of customs duties and vat, if your just talking about normal dropshipping i.e. goods from your supplier shipping direct to your customer with you physically handling nothing, if the goods are coming from outside the EU, your cusotmer will be the one paying any import duties on the goods.