Custom Charge Load

Pricing Customs Charge Load

To help mitigate the cost of import VAT at the border, Fruugo will add a customs charge amount equivalent to the local VAT to the product price for orders to the UK & EU where the product is outside Fruugo's remit for marketplace tax.

The customs charge amount will be available to all retailers that are shipping their orders using DDP and can receive the customs charge as part of your regular payment. We realise that the local VAT wonโ€™t cover 100% of the cost of shipping DDP. Customs agents will charge VAT on the customer-facing price, so their charge will be a few percent higher than the VAT for the product. We are finalising our process and payment solution for reimbursing import VAT on goods Delivered Duty Paid and will send a comprehensive update over the coming days. More information is available from our Account Management team.

For DDU shipments, Fruugo will pay for and administrate customer requests for refunds of VAT and duty to help alleviate some of the friction. The customer will request the refund of these charges via our Customer Services team.

DDU

DDU is sometimes referred to as Delivered At Place (DAP). If you ship DDU, the customer will be responsible for VAT and possible duty. Before receiving their package, they will need to pay those charges to their local tax authority.

This will obviously not be a positive customer experience and is likely to lead to increased returns and refused deliveries.

DDP

DDP clearly provides a much better experience for customers in that they donโ€™t incur any unexpected additional costs or delays. When you ship DDP, you become the importer of record and take on the responsibility for VAT and duty. There are two different ways for you to manage that process.

If you donโ€™t have VAT registrations in the EU countries and you donโ€™t want to register, you can choose to use a customs broker, typically your carrier. They will manage VAT and customs fees and invoice you on a regular basis.

If you have VAT registrations in any of the EU countries and you have the fiscal representatives that may be required, the process will be the same as it is today. Fruugo will collect local VAT at the point of sale and pass that on to you to offset sales VAT against import VAT on your tax return. We will do this if we hold the details of your local tax registrations, so please ensure that we have your up to date registration details.