Dropshipping VAT France: Complete Guide for Sellers
Dropshipping from China or other countries creates particular VAT obligations. Here's how to navigate this complexity without risking a tax audit.
Introduction: Dropshipping, a Business Model Under Tax Scrutiny
Dropshipping has exploded in recent years. No stock to manage, no complex logistics, attractive margins... On paper, it's the ideal business model. But on the VAT side, it's a minefield.
Tax authorities have understood the scale of the phenomenon and have strengthened their controls. Platforms like AliExpress, CJDropshipping, or Alibaba are in their sights.
Tax Audit Alert
The Three VAT Configurations for Dropshipping
Depending on your parcel value and organization, the rules change completely.
Configuration 1: Parcels ≤ €150 with IOSS
The IOSS (Import One-Stop Shop) regime is designed for small imported parcels. It allows you to collect VAT at the point of sale and remit it via a single declaration.
Configuration 2: Parcels ≤ €150 without IOSS
If you're not registered for IOSS, VAT is collected by the carrier at arrival.
Configuration 3: Parcels > €150
Above €150, the IOSS regime no longer applies. Customs duties and VAT are systematically collected at import.
How to Secure Your Dropshipping Business
1. Register for IOSS
If you sell products ≤ €150, IOSS is almost essential.
2. Choose Your Suppliers Carefully
Work with suppliers who can properly handle customs declarations.
3. Track Every Sale
Maintain complete records for each transaction.
4. Use a Compliance Tool
NomadVAT automatically identifies IOSS vs non-IOSS sales and VAT anomalies.
Conclusion: Legal Dropshipping is Possible
Dropshipping isn't illegal. What's illegal is not respecting VAT rules. With good organization and the right tools, you can develop a compliant dropshipping business.