Can cross-border cloud warehouse consignment be tax inclusive

With the development of cross-border e-commerce, more and more sellers are choosing to ship through cross-border cloud warehouses to reduce logistics time and costs. However, for sellers, including taxes is a sensitive topic. This article will analyze and compare DDP and IOSS tariff prepayment to help sellers better choose the logistics method that suits them.

1、 DDP (Delivery Duty Paid)

DDP refers to the payment of customs duties in the importing country, and the importer pays customs duties and import taxes when receiving goods in the exporting country. In DDP mode, sellers do not need to worry about the customs duties of the goods in the importing country, as the customs duties have already been paid by the importer in the importing country. However, this approach requires the seller to have a branch or agent in the importing country in order to handle matters such as tariff payments and import licenses. Meanwhile, the DDP method requires the seller to provide tax and payment information of the importing country in order for the importer to pay the customs duties.

2、 IOSS (Import Duty Paid by Seller)

IOSS refers to the seller paying customs duties and import taxes in the exporting country and delivering the goods to the importer. Under the IOSS method, the seller needs to worry about the tariff issue of the goods in the importing country, as the tariff needs to be paid by the seller and paid in the exporting country. Unlike the DDP method, the IOSS method does not require a branch or agent in the importing country, as tariffs can be paid in the exporting country, and the seller only needs to deliver the goods to the importer.

3、 Advantages and disadvantages analysis

The advantages of DDP include:

Sellers do not need to worry about tariff issues and can focus on sales and customer service.

The goods can be directly transported to the importing country, and the logistics time is relatively short.

The drawbacks of DDP include:

The need to establish branches or agents abroad increases logistics costs and time.

It is necessary to bear tariffs and import taxes, and if the tariff rate is low, the seller's profits may be consumed.

The advantages of IOSS include:

Sellers need to bear tariffs and import taxes to better control the sales and pricing of goods in the importing country.

The goods can be directly transported to the importing country, and the logistics time is relatively short.

The drawbacks of IOSS include:

The need to establish branches or agents abroad increases logistics costs and time.

It is necessary to bear tariffs and import taxes, and if the tariff rate is low, the seller's profits may be consumed.

The DDP method is suitable for sellers who have a large number of overseas orders and have the ability to establish branches or agents abroad to handle matters such as tariff payments and import licenses. The IOSS method is suitable for sellers who have the ability to bear tariffs and import taxes, but need to bear tariffs and import taxes. If the tariff rate is low, the seller's profits may be consumed.

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