NOUVELLES RÈGLES DE LA TVA POUR L'ACTIVITÉ DE DROPSHIPPING
The year 2024 marks a crucial moment for dropshipping actors in France engaged in distance selling, due to the introduction of VAT-related measures.
From now on, companies practicing dropshipping will be subject to VAT on distance sales of imported goods, following the adoption of the Finance Law for 2024.
As a reminder, dropshipping involves a professional, the dropshipper, acquiring goods from a supplier and reselling them without taking possession. The dropshipper invoices the customer, while the supplier directly ships the product to the customer without going through the dropshipper’s premises.
Regarding the online sale of imported goods, the customer places an order on the dropshipper’s website for a product held by a third party abroad. The dropshipper purchases the goods from the foreign supplier and organizes delivery to the final customer in France, bypassing customs formalities.
Before the reform, from a tax perspective, the dropshipper’s margin was not subject to VAT in France if the sale was declared and VAT paid by the supplier. The Finance Law for 2024 introduces specific provisions to include dropshipping within the scope of VAT on importation. Henceforth, dropshippers must declare and pay VAT on imported products sold in France if the VAT collected on importation is lower than what would have been determined for a distance sale in France.
This measure aims to eliminate the tax advantage of dropshippers compared to other online commerce actors, and it applies regardless of the order amount.
Practically, dropshipping companies must comply with new obligations, including collecting VAT on all transactions, filing tax returns for VAT on importation and collected VAT.
To comply with these new rules, dropshippers must adjust their selling prices to reflect the applicable 20% VAT, renegotiate purchase prices if possible, and seek guidance to ensure tax compliance.
In conclusion, dropshipping professionals must demonstrate vigilance and adaptability in this new regulatory context. The LEX-PORT firm offers a compliance audit to assist companies in adapting to this new regulation.
