If you are using Kickstarter’s Pledge Manager and the tax collection feature for international shipments, it is essential that your shipping labels and customs documentation clearly signal that VAT has already been collected. Failure to do this often results in the carrier mistakenly charging your backers again at the border.
To avoid this, follow these steps:
Step 1: Identify the correct Tax ID:
- If Kickstarter is the Deemed Supplier (typically under €150/£135): You must use the Kickstarter IOSS or UK VAT ID provided in your pledge manager settings.
- If you are the tax collector (typically over threshold): You must use your own registered VAT ID.
Step 2: Update your Shipping Data: When creating shipping labels or customs entries in your carrier’s portal (e.g., DHL, FedEx, UPS), ensure the Tax ID is entered in the designated "Tax/VAT ID" field. Do not rely on hand-written notes alone.
Step 3: Include the "Tax Paid" Declaration: Add the following text to the "Notes," "Description," or "Invoice" section of all your shipping documents:
TAX PAID DECLARATION
VAT STATUS: VAT PRE-COLLECTED AT POINT OF SALE.
VAT REGISTRATION NUMBER: [INSERT KICKSTARTER ID OR YOUR OWN VAT ID]
REASON: TRANSACTION PROCESSED UNDER MARKETPLACE FACILITATOR / SELLER-COLLECTED VAT REGIME.
CARRIER INSTRUCTIONS: The VAT for this shipment has been fully collected from the recipient at the time of purchase. Please utilize the provided VAT Identification number to process the customs entry as "pre-paid." Do not collect import VAT or additional VAT-related brokerage fees from the recipient. If additional documentation is required, please contact: [INSERT CREATOR SUPPORT EMAIL].
Step 4: Use Accurate HS Codes: Ensure every item is assigned a correct HS code. This allows customs to accurately categorize the goods and verify the pre-paid tax status.
Step 5: Coordinate with your Carrier: Before shipping, confirm with your courier that your account is configured to pass through the IOSS/VAT ID information electronically to customs.
Commercial Invoice Note Template
Copy and paste this block into the "Notes" or "Description" section of your commercial invoice.
TAX PAID DECLARATION
VAT STATUS: VAT HAS BEEN PRE-COLLECTED AT POINT OF SALE.
VAT REGISTRATION NUMBER: [INSERT KICKSTARTER VAT/IOSS ID OR YOUR OWN VAT ID]
REASON: TRANSACTION PROCESSED UNDER MARKETPLACE FACILITATOR / SELLER-COLLECTED VAT REGIME.
Please do not collect import VAT from the recipient. If additional documentation is required, please contact [INSERT CREATOR EMAIL] immediately.