How to avoid tax surprises for international customers
To avoid tax surprises for international customers, disclose total landed cost early and keep it unchanged through checkout. Detect location, price in local currency, and calculate duties, import fees, and VAT/GST upfront. Collect taxes at checkout where required and clearly state Incoterms and who pays. Show a line-item breakdown, provide compliant invoices, and communicate delivery timelines. Consistent, transparent pricing improves trust, prevents doorstep charges, and supports cross‑border tax reporting obligations.
FAQ
### What is the best way to present landed costs to international shoppers?
Show item price, shipping, duties, and taxes as a clear breakdown in local currency before payment. Keep totals consistent across checkout and payment steps, and disclose exchange rates and any surcharges upfront.
### Should I use DDP or DAP to avoid tax surprises?
DDP collects duties and taxes at checkout and eliminates courier collection at delivery, reducing surprises. DAP shifts payment to delivery and often causes unexpected charges. Use DDP where possible, or clearly estimate and disclose costs when using DAP.
### Do I need to register for VAT/GST in other countries?
Requirements vary by market and thresholds. Many jurisdictions require registration or special schemes (e.g., EU IOSS/OSS, UK VAT, AU/NZ GST). Determine applicability, collect and remit taxes where required, and include registration numbers on invoices.
### What documentation should I provide to support tax compliance?
Provide a commercial invoice showing HS codes, declared value and currency, duties and taxes collected, applicable registration numbers, chosen Incoterm, and consignee details. Include a receipt that matches the checkout tax breakdown.
