VAT and Custom duty for dropshipping and Marketplace

[sac0204]

Hi,
I am about to start a drop shipping business and an online Marketplace (first drop shipping and then marketplace). For drop shipping, I will be importing products from China/HK using AliExpress and sell it to UK and other European countries using my website. I am not sure about VAT though -

• 1. Do I have to register for VAT
  2. Do I have to register for import license?
  3. I will be a sole trader, do I have to pay the VAT on the products when customer order them and hit the UK or other EU countries' borders?
  4. If I am not supposed to pay VAT and customer is (as I am not handling the product), what is the best practice? Probably a note on the product page saying VAT is not included in the price?
  5. Who pays the custom charges?

Many thanks!

[absolutevat]

Registration requirements will depend largely on how the goods are moving. From your post I presume that goods might be imported into the UK, or EU country of the customer?

If you are the importer of record (responsible for clearing the goods through customs), you would be seen as making the sale in that country. As EU countries have a zero threshold for non-established businesses, you potentially have a number of obligations. Of course, once registered in a country, you can recover the import VAT on the basis you make taxable supplies.

Further details on the movement of goods, and the status of customers would be helpful (i.e. all B2C sales?)