Taxes

Taxes

๐Ÿงพ Drop taxes

Below you will find general information about the taxation of transactions carried out through Dropea.

๐Ÿข Dropea tax information

Dropea Limited
Level 3 (Suite No. 3001), Tower Business Centre, Tower Street
Swatar, BKR 4013
Birkirkara, Malta

VAT: MT29745525
โš ๏ธ Important notice:
The information contained in this article is for informational purposes only and does not replace professional tax advice.

Each dropshipper is responsible for consulting with their tax advisor to determine the tax obligations applicable to their business.

โ“ Which invoice drops?

Dropea does not buy or sell merchandise.

Dropea Limited , an entity with tax residence in Malta, provides the following services:

  • ๐Ÿค Intermediation.
  • ๐Ÿšš Transportation.
  • ๐Ÿ“ฆ Logistics.
๐Ÿ“Œ Therefore:
The invoices issued by Dropea correspond to the provision of services and not to the sale of products.

๐Ÿ’ถ Does the invoice I receive from Dropea include VAT?

In general terms, Dropea's customers are considered to be business owners or professionals.

For this reason, invoices issued by Dropea are normally issued without VAT .

๐Ÿ“Œ Exception:
If the customer is based in Malta, the invoice will include the corresponding Maltese VAT.

When the customer is located in another European Union country and acts as a businessperson or professional, the reverse charge mechanism applies.

This means that the customer will be responsible for self-assessing the corresponding VAT according to the regulations of their country.

โš ๏ธ Important:
Customers established in the European Union (excluding Malta and certain territories excluded from the VAT Directive) must provide a valid VAT Number to prove their status as a businessperson or professional.

๐Ÿญ Does my supplier's invoice include VAT?

The tax treatment will depend on:

  • ๐Ÿ“ Where the supplier is located.
  • ๐Ÿ“ฆ Where the merchandise is stored.
  • ๐Ÿšš Where the order is delivered.
  • ๐Ÿ†” The VAT Number of the dropshipper.

๐Ÿ“ฆ Deliveries within Spanish VAT territory

Supplier established in Invoice with Spanish VAT? Reverse charge
Spanish VAT territory Yeah No
Outside of Spanish VAT territory No Yeah

When the supplier is not established in Spanish VAT territory, the dropshipper must self-assess the VAT through the reverse charge mechanism.

๐ŸŒ Intra-community deliveries

If the order is shipped from Spain to another country in the European Union, the tax treatment will depend on the VAT number used by the dropshipper.

In these cases, taxation can vary significantly, so it is recommended to consult with a specialized tax advisor.

๐Ÿช What happens if I am a retailer under the special VAT scheme?

If you are covered by the special scheme for equivalent surcharges of the Spanish VAT, you must inform your supplier.

The supplier will verify this condition through the Tax Agency (AEAT).

When the invoice includes Spanish VAT, the corresponding equivalence surcharge will also be applied.

๐Ÿ“Š Types of equivalence surcharge

VAT rate Equivalence surcharge
21% 5.20%
10% 1.40%
5% 0.62%
4% 0.50%
0% 0%

If you must self-assess the VAT for a purchase, you must also pay the corresponding equivalence surcharge using Form 309 .

๐Ÿงพ Should I issue invoices with VAT?

๐Ÿšจ Dropshipper tax responsibility:
Dropea is not responsible for or in charge of ensuring compliance with the tax obligations of dropshippers.

The obligation to issue invoices, apply VAT, file tax returns, or comply with any other tax obligation will depend on your particular tax situation.

Therefore, we recommend that you consult with a tax advisor to determine the correct treatment of your activity.

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