Where does DragonPrices operate?
All transactions conducted on DragonPrices are governed by both Spanish and EU laws, in addition to any other relevant legal regulations pertaining to international transactions. The purchasing process is aligned with Spanish legislation, treating all sales activities as originating within Spain.
Do DragonPrices’s prices include VAT or other taxes?
No. DragonPrices operates in certain regions that enjoy VAT (value-added tax) exemptions, resulting in its exclusion from the listed prices. We understand that a significant portion of our clientele comprises businesses or professionals who could potentially claim deductions. The application of VAT will be determined and incorporated, if applicable, during the final stage of the shopping cart process.
TRANSACTIONS BETWEEN COUNTRIES OF THE EUROPEAN UNION:
Do companies from EU countries have to pay VAT in their purchases?
As DragonPrices is based in Spain and the invoicing company possesses an intra-community VAT number, companies situated within any EU nation and holding a valid VAT number (intra-community VAT number) are eligible for VAT exemption on their purchases. To facilitate this, our system will authenticate the VAT number’s validity by utilizing the VIES platform.
Do companies from EU countries with a VAT number have to pay VAT if the delivery of the products takes place in Spain?
Certainly, if the products remain within Spanish borders, it is a legal requirement in Spain for us to apply VAT charges.
Do companies from EU countries without a VAT number have to pay VAT?
Indeed, VAT is applicable to companies and individuals residing in EU nations who do not possess a VAT number.
Is it necessary to pay VAT to DragonPrices in dropshipping shipments to customers of the EU with a VAT number who have not been charged VAT by me?
Choice 1: If your company operates within Spain, VAT is applicable, as both DragonPrices and your company are situated in Spain. This requirement to charge VAT between Spanish companies is independent of the destination of the products. However, the VAT paid to DragonPrices can be treated as input VAT, allowing for deduction and recovery.
Choice 2: Companies located in any European Union country (excluding Spain) and possessing a valid VAT number are exempt from VAT charges.
Choice 3: Companies based in any European Union country (excluding Spain) without a VAT number are subject to VAT payment.
NON-EU TRANSACTIONS:
Do non-EU companies have to pay VAT?
Purchases conducted by companies, as well as individuals – whether legal or natural persons – residing in non-EU countries and involving deliveries outside the bounds of the European Union, are eligible for VAT exemption due to their classification as exports. However, if deliveries are destined for locations within Spain or other European Union countries, VAT payment becomes requisite.
Beyond VAT, are there additional taxes that must be settled when the delivery occurs outside the European Union?
In the context of this specific purchase or shipment approach, it is important to note that the customs framework may impose additional tax obligations based on the specific requirements of each respective country.
Is it necessary to pay VAT to DragonPrices in dropshipping shipments to customers of non-EU countries who have not been charged VAT by me?
You should not pay VAT, as this is an export.
TRANSACTIONS WITH THE CANARY ISLANDS, CEUTA AND MELILLA:
Do companies and natural or legal persons resident in the Canary Islands, Ceuta and Melilla have to pay VAT?
Due to their distinct tax regulations, the Canary Islands, Ceuta, and Melilla are designated as non-EU territories. Consequently, any purchases accompanied by invoices and deliveries within these geographical areas are exempt from VAT.
Are companies, along with individuals – whether legal or natural entities – residing in the Canary Islands, Ceuta, and Melilla required to pay VAT when products are delivered to mainland Spain, the Balearic Islands, or any other European Union country?
Yes, in instances where the invoice originates in the Canary Islands, Ceuta, or Melilla, yet the products remain within the European Union territory, Spanish law mandates the imposition of VAT.
Apart from VAT, are there other taxes that need to be paid if the delivery takes place in the Canary Islands, Ceuta and Melilla?
In relation to this method of purchase and shipment, the customs framework might impose additional tax responsibilities in accordance with the specific requirements of each individual region.
Is it necessary to pay VAT to DragonPrices in dropshipping shipments to customers of the Canary Islands, Ceuta or Melilla who have not been charged VAT by me?
There is no requirement to pay VAT, as this falls under the category of an export.
Please note that if you are not registered as a Spanish exporter, you will not have the capability to carry out dropshipping shipments to the Canary Islands, Ceuta, or Melilla. The sole method for executing such shipments is to dispatch the order to your store and subsequently forward it to your customer. In the event of mistakenly sending an order to any of the aforementioned destinations, your order will be nullified and refunded.