Overview of Pay Customer VAT PC-VAT Required

Certain European Union-bound and United Kingdom-bound orders may be marked with the “Pay Customer VAT “PC-VAT” required” flag in the Merchant Dashboard. This article provides merchants with an overview of these types of orders.

Click to go directly to the topic:

• Orders Bound for the European Union
• Orders Bound for the United Kingdom
• API-related information

 

Orders Bound for the European Union

Note: The below EU-specific section is related to EU fulfillment requirements.

EU-bound orders shipped from outside of the EU where the consignment value* is greater than €150 are highlighted with a "Pay Customer VAT "PC-VAT" required" flag in the Merchant Dashboard. Merchants are required to use specific carriers that provide Delivered Duty Paid (DDP) services to fulfill these types of orders. Carriers providing DDP services offer support to remit (at customs) VAT amount collected by Wish and/or customs duties as well as other charges or fees levied by the country of destination.

*Consignment value is the total customer-paid product price for all products that a customer purchases in a single transaction from an individual merchant, excluding shipping, taxes, and duties.

This flag can be seen for relevant orders next to the Order ID under the Order Overview in the Order details page. This flag will also be visible under the Orders > Unfulfilled Orders or Orders > History page. See below for an example shown in the Orders > History page:

As shown in the screenshot above, carrier selection for merchants shipping from Mainland China using WishPost and from outside of Mainland China and outside of the EU are different. Specifically:

1. For merchants shipping from Mainland China using WishPost:

Merchants are required to ship these orders with one of the three below-listed WishPost logistics channels that provides Delivered Duty Paid (DDP) service and offers support to remit (at customs) VAT amount collected by Wish and/or customs duties: 

• Sunyou European Express Parcel
• EQ-Express Parcel-HV-GC
• EQ-Expressparcel-HV-SC

Merchants may also need to file/share certain additional order information with the shipping carriers of these corresponding WishPost logistics channels as a necessary step to complete the customs declaration. To learn more, go to an article on order information for EU customs and locate the section on shipping to the EU from Mainland China.

As these orders require a formal customs entry and appointed “Importer of Record” in order to clear EU customs, merchants should be aware that they may be required to take the following actions:

1). Provide carriers with their own EU EORI number and/or their own VAT number with the shipping carriers

and/or

2). Pay applicable customs duties and other customs clearance fees at the time of import

Additionally, shipping carriers may require non-EU domiciled merchants shipping into the EU from outside of the EU to appoint an EU-domiciled representative to assume customs liabilities associated with the entry. Such a partner acts in coordination with the non-EU-domiciled importer to ensure complete and accurate customs declaration, and assumes liability for the contents of the customs declaration. Please consult your tax advisor and selected shipping carrier for more information.

2. For merchants shipping from outside of Mainland China and outside of the EU

Merchants shipping EU-bound orders from outside of the EU and outside of Mainland China are required to ship these orders with one of the below-listed acceptable shipping carriers that provides Delivered Duty Paid (DDP) service and offers support to remit (at customs) VAT amount collected by Wish and/or customs duties.

Please note: If merchants plan to use one of the Postal carriers outlined in the below table for their DDP services, then the merchant must confirm with the specific carrier that they are able to provide DDP services for the order they are shipping.

Carrier Name	DDP Supported Origin Countries/Regions	Carrier Type
AsendiaUK	GB	Commercial
AsendiaUSA	US	Commercial
B2CEurope	EU	Commercial
BPost	BE	Postal
BRTBartolini	IT	Commercial
Colissimo	FR	Commercial
CorreosDeEspana	ES	Postal
CorreosExpress	ES, PT	Commercial
DanmarkPost	DK	Postal
DeutschePost	DE	Postal
DHL	US, CA, KR, JP, TR, JP, EU, MA, PK, IN	Commercial
DHLFreightSweden	SE	Commercial
DHLGermany	DE	Commercial
DHLPoland	PL	Commercial
DirectLink	EU	Commercial
DPD	EU, RU	Commercial
DPDFrance	FR	Commercial
DPDGermany	DE	Commercial
DPDUK	GB	Commercial
FedEx	US, CA, KR, JP, TR, JP, EU, MA, PK, IN	Commercial
GlobegisticsInc	US	Commercial
GLS	EU, US	Commercial
GLSNetherlands	NL	Commercial
GLSSpain	ES	Commercial
Hermes	GB	Commercial
HermesGermany	DE	Commercial
LandmarkGlobal	EU, US, CA, AU	Commercial
LaPosteColissimo	FR	Commercial
MagyarPosta	HU	Postal
ParcelForce	GB	Commercial
PortugalCTT	PT	Commercial
PosteItaliane	IT	Postal
PostNL	NL	Postal
PTSWorldwideExpress	TR	Commercial
PTTPosta	TR	Postal
QXPRESS	KR	Commercial
RoyalMail	GB	Postal
RRDonnelley	US	Commercial
Sagawa	JP	Commercial
Sending	GB	Commercial
Spring	EU	Commercial
TNT	EU, US, CA, MA	Commercial
TNTFrance	FR	Commercial
UPS	US, CA, KR, JP, TR, JP, EU, MA, IN	Commercial
USPS	US	Postal
Yamato	JP	Commercial

Merchants are also required to file certain additional order information with the shipping carriers as a necessary step to complete the customs declaration. To learn more, go to the article on order information for EU customs and locate the section on shipping to the EU from outside of the EU AND outside of Mainland China.

As these orders require a formal customs entry and appointed “Importer of Record” in order to clear EU customs, merchants should be aware that they may be required to take the following actions: 

1). Provide carriers with their own EU EORI and/or VAT number

and/or

2). Pay applicable customs duties and other customs clearance fees at the time of import

Additionally, shipping carriers may require non-EU domiciled merchants shipping into the EU from outside of the EU to appoint an EU-domiciled representative to assume customs liabilities associated with the entry. Such a partner will act in coordination with the non-EU-domiciled importer to ensure complete and accurate Customs declaration, and will assume liability for the contents of the customs declaration. Please consult your tax advisor and selected shipping carrier for more information.

Orders Bound for the United Kingdom

UK-bound orders shipped from outside of the UK where the consignment value* is greater than £135 are flagged as “Pay Customer VAT “PC-VAT” required” orders in the Merchant Dashboard. Merchants are required to use specific carriers that provide Delivered Duty Paid (DDP) services to fulfill these types of orders. Carriers that provide DDP services can pay VAT on behalf of customers to customs, so long as the merchant remits the VAT to the carriers.

*Consignment value is the total customer-paid product price for all products that a customer purchases in a single transaction from an individual merchant, excluding shipping, taxes, and duties.

This flag is visible under the Orders > Unfulfilled Orders or Orders > History page. For example, on the Orders > History page, this flag shows under the View Product (SKU) column for the relevant orders:

As shown in the screenshot above, carrier selection for merchants shipping from Mainland China using WishPost and from outside of Mainland China and outside of UK will be different. Specifically:

1. For merchants shipping from Mainland China using WishPost:

Merchants are required to utilize one of the following WishPost logistics channels that provide DDP services to fulfill this type of order:

• EQ-Express Parcel GC
• EQ-Express Parcel SC

2. For merchants shipping from outside of Mainland China and outside of the UK:

For UK-bound orders, merchants must select a Confirmed Delivery Shipping Carrier that provides DDP services.

To comply with UK VAT, there are a number of other related requirements when fulfilling UK-bound “Pay Customer VAT “PC-VAT” required” orders (along with all UK-bound orders) from outside of the UK. Please see read more about shipping to the UK to learn about these requirements.

API-related information

ERPs intake the following API field:

pay_customer_vat_required (This is True when it is a “Pay Customer VAT “PC-VAT” required” order, and False when it is not).

For UK-bound “Pay Customer VAT “PC-VAT” required” orders, merchants shipping from outside of Mainland China and outside of the UK are required to include certain order/fulfillment information (i.e., customer-paid price) when generating shipping labels. The required information can be found in Merchant Dashboard and via API. Learn more about shipping to the UK.