How to settle shipping costs when selling over the Internet


Transport costs (including shipping) of goods related to the supply of goods should increase the taxable amount of these supplies.

The transport costs charged to the buyer by the supplier increase the taxable amount of the goods supplied. However, it is possible to exclude shipping costs from VAT.This method consists in granting the seller a specific power of attorney by the buyer, which authorizes him to conclude a contract on behalf of the buyer with a post office or courier company (concerning the delivery of the purchased goods).

Civil law regulations do not require a specific form for specific powers of attorney, in particular a written form. As a consequence, it is permissible for the buyer to grant a power of attorney to conclude a contract with a post office or courier company on his behalf by accepting the regulations of the online store or the conditions of the online auction.

As a result, shipping costs are excluded from the taxable amount of goods, so there is no need to add VAT to these costs. In this case, there is no separately taxed taxable activity, but the exclusion of a specific amount from the tax base. Then you should not record shipping costs using cash registers or indicate these costs as a separate item on the invoices issued to the buyer. However, shipping costs may be indicated on the invoice in the form of an annotation.