Hi,

I would like to start my dropshipping business, but I'm confused about legal stuff. Can someone please explain how it should be? Because all information what I have found on internet is very controversial.

I'm located in Netherlands and my suppliers will be lets say China and Korea, but clients will be all around the world. So my questions are:

1) Should I register company or I can do it as private person?
2) Should I declare any taxes like VAT or that is paid by suppliers in their country or I just need to pay income tax on what I make?

Thank you.

Advice

1. In regards to registering a company, it is different from country to country. Generally I would advise to register a limited company. This way you will not be personally liable if unforseen issues occur. Generally it is hard to start a new business.

2. When dropshipping outside your home country, VAT/duty would normally be on the customer (unless you choose to apply a different policy). Make sure the dropshipper marks the package with the right value. Then you just pay taxes on the profit you make on those sales. It's good to design the business with the least amount of accounting and paperwork as possible.