Dropshipping adds import VAT complexity most standard guides skip. Here’s how the Kleinunternehmer threshold and the EU’s IOSS scheme interact.
Last updated: June 2026
Dropshipping doesn’t get a special VAT threshold — the Kleinunternehmer thresholds apply the same as any other retail business, based on the price your customer pays you, not your profit margin.
If your supplier ships from within the EU, normal VAT rules apply. If your supplier ships directly from outside the EU (China, for example) to your German customer, that’s an import, and the EU’s IOSS (Import One Stop Shop) scheme applies for consignments valued at €150 or less — sellers registered for IOSS collect VAT at the point of sale and remit it via a single monthly IOSS return, avoiding the customer facing a separate import VAT bill on delivery.
For consignments over €150, standard import VAT and customs procedures apply at the border instead.
The sale price — the full amount your customer pays. Your margin is irrelevant to the Kleinunternehmer threshold, which is based on turnover, not profit.
The Import One Stop Shop scheme lets you collect VAT at the point of sale on consignments up to €150 shipped from outside the EU, remitting it via one monthly return rather than the customer facing a customs bill on delivery. Registration is optional but commonly used by dropshippers.
These follow standard import VAT and customs procedures at the border, typically collected by the courier before the parcel reaches the customer.
Generally no, if you’re simply purchasing from a foreign supplier and reselling — you’re their customer, not conducting a taxable activity in their jurisdiction.
Sometimes yes for larger marketplaces, which may be registered for IOSS and act as deemed supplier — check your specific platform’s terms before assuming.
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