Duties, Taxes, Distance Selling
When shipping goods internationally, it is important to consider the effect of duties, taxes, and other clearance charges. Depending on the shipment content and the destination country, clearance charges could significantly impact the total shipment cost. The ability to calculate and communicate the landed cost up-front can save both you and your customers valuable time, money, and effort. Global-e will calculate the duties and taxes applicable to each order and will present the relevant options to the customer in the checkout page.
A shipment’s duty and tax amount is based on the following parameters:
• Product value
• Trade agreements
• Country of manufacture
• Description and end use of the product
• The product’s Harmonized System (HS) code
• Country-specific regulations
For EU merchants, distance selling regulations will apply on all transactions within the EU. This means that no duties are applied, however local taxes need to be collected by the seller. Read more about distance selling regulations here.
Since 1 July 2018, the Australian goods and services tax (GST) applies to sales of low value goods imported by customers into Australia (under AU$1000). Read more about GST in Australia here.