Q&A Duties, Taxes, Distance Selling
What is the threshold of D&T in the EU and the US?
The duty threshold in the EU is 150 EUR.
The D&T rate is determined by several parameters like outbound, destination, HS code (product classification), product origin country, value, and more.
For the USA there is a threshold above $800, and also US Sales Tax, which varies based on the state. US Sales Tax has been collected since January 1st, 2020 following a Supreme Court decision in 2018 that rules that remote sellers with no physical presence in a state must collect and remit the sales tax for each state where they do business which applies also for cross-border sales into the US market. The tax is different for each state.
How is D&T Calculated?
Global‑e calculates the duties and taxes due on each relevant order depending on the shipping address, the product tax code, the country of origin of products, value, and more, and presents it to the customer on the checkout page, with an option to prepay to guarantee the landed cost.
For some countries (like the EU, UK, Australia, New Zealand, Norway, and Switzerland) we use Hidden Forced DDP, which means the customer does not see the D&T when completing the purchase. You may absorb the cost or include D&T in product cost using the pricing coefficient.
Can Duties and Taxes be Included in the Product Price?
Duties and taxes can be included in product prices when selling internationally and applied to specific countries. In this case, the customer will only see total product prices at checkout and be informed that all duties and taxes are included.
In order to compensate for this extra cost, it is possible for merchants to charge customers for shipping and/or increase the prices of products from the local product price by using the country coefficient. Currently, this is available for countries that require mandatory Duties and Taxes.