LTT Dispatch VAT EU Handling
This document outlines the VAT handling process for shipments to the EU as part of our Dispatch service. It defines four distinct customer scenarios based on how VAT is managed and provides a UI flow for handling these cases within the system. The goal is to ensure compliance with EU VAT regulations and streamline the user experience for managing shipments.
Recipient Location Check
If the recipient is not located in the EU, then no further action required. If the recipient is located in the EU, proceed to the following steps
Customer has collected VAT
The customer has collected VAT from their customer and will provide a commercial invoice.
Requirements
- Customer provides an EU IOSS number or UK VAT number.
- Customer uploads a commercial invoice.
Customer has not collected VAT
LTT Handles VAT
The customer wants LTT to handle it. This option is available only if the items were manufactured by LTT and stored in our warehouse and shipment total is less than the applicable IOSS threshold.
Requirements
- All items in the shipment are manufactured by LTT.
- Shipment declared (intrinsic) value is less than the IOSS threshold
- LTT calculates VAT based on manufacturing cost and generates a commercial invoice.
Delivered Duty Paid (DDP)
The customer opts for DDP, declaring value of each product, and uploading supporting documentation (e.g. invoice).
Requirements
- Customer uploads proof of product value.
- Customer declares the value of all items in the shipment.
- LTT collects VAT based on the declared value and uses shipping services that support DDP (e.g. FedEx).
The recipient is a Business with VAT ID
Requirements
- Customer provides the recipient’s VAT/TAX ID.
- The recipient handles all customs charges.
- Customer uploads supporting documentation such as a commercial invoice
The recipient will pay the VAT/TAX upon delivery
No further action is required.