{"id":11999,"date":"2024-10-17T10:02:47","date_gmt":"2024-10-17T10:02:47","guid":{"rendered":"https:\/\/www.directfromitaly.it\/what-are-the-risks-of-ignoring-excise-duties-and-vat-when-selling-to-private-foreign-customers\/"},"modified":"2024-10-17T10:02:47","modified_gmt":"2024-10-17T10:02:47","slug":"what-are-the-risks-of-ignoring-excise-duties-and-vat-when-selling-to-private-foreign-customers","status":"publish","type":"post","link":"https:\/\/www.directfromitaly.it\/en\/what-are-the-risks-of-ignoring-excise-duties-and-vat-when-selling-to-private-foreign-customers\/","title":{"rendered":"What are the risks of ignoring excise duties and VAT when selling to private foreign customers?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"11999\" class=\"elementor elementor-11999\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5a281ce6 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5a281ce6\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5a305384\" data-id=\"5a305384\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-63aa8ead elementor-widget elementor-widget-spacer\" data-id=\"63aa8ead\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-694bef42 elementor-widget elementor-widget-heading\" data-id=\"694bef42\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">\"In the direct sale of alcoholic beverages to foreign private individuals, ignoring tax and customs regulations can lead to fines and damage to your reputation. But what exactly happens if you disregard excise duties and VAT?\"<\/h2>\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t<div class=\"elementor-element elementor-element-5ce7199 e-flex e-con-boxed e-con e-parent\" data-id=\"5ce7199\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-d530119 elementor-widget elementor-widget-spacer\" data-id=\"d530119\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-63b0557 elementor-widget__width-initial elementor-widget elementor-widget-text-editor\" data-id=\"63b0557\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><strong><b>More and more Italian wineries, breweries, and distilleries are selling directly to foreign customers<\/b>, leveraging both physical stores and <span style=\"text-align: var(--text-align);\">e-commerce. However, many producers make a mistake that could be costly:  <\/span><b>ignoring the customs and tax regulations<\/b><span style=\"text-align: var(--text-align);\"> <b>governing duties, excise duties, and VAT<\/b>. This can lead to penalties that, when accumulated, easily reach double the amount of the taxes owed. <\/span><\/strong><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6b0db07 elementor-widget elementor-widget-image\" data-id=\"6b0db07\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"800\" height=\"450\" src=\"https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/22-1-1024x576.png\" class=\"attachment-large size-large wp-image-17189\" alt=\"Accise e Iva - Direct from\" srcset=\"https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/22-1-1024x576.png 1024w, https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/22-1-300x169.png 300w, https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/22-1-768x432.png 768w, https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/22-1-1536x864.png 1536w, https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/22-1.png 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b0199f7 elementor-widget elementor-widget-spacer\" data-id=\"b0199f7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-da948e7 elementor-widget elementor-widget-heading\" data-id=\"da948e7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">The risk of \u201cmy buddy's way\u201d solutions<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-082866b elementor-widget elementor-widget-text-editor\" data-id=\"082866b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><strong>To save on costs or speed up shipments, some companies <b>separate the product cost from the shipping<\/b>, always paying VAT in Italy and avoiding the payment of duties and excise taxes. T<b>hey hope the final customer or the carrier will handle these matters for them<\/b>, but as we covered in a previous <a href=\"https:\/\/www.directfromitaly.it\/en\/dividing-the-product-cost-from-the-shipping-cost-is-not-correct-why\/\"><b>article<\/b><\/a>, this hope is in vain. <\/strong><\/p>\n<p><strong><b>Increasingly digitalized customs offices<\/b> now conduct frequent and targeted checks, verifying whether the goods are accompanied by the correct documentation and whether duties, excise taxes, and required taxes have been paid. <\/strong><\/p>\n<p><strong>The result? When a shipment is irregular, <b>customs can hold the product for a thorough inspection<\/b>, causing delays but, more importantly, leading to heavy fines that impact both the final customer and the seller.  <\/strong><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-17bb51e elementor-widget elementor-widget-image\" data-id=\"17bb51e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"800\" height=\"450\" src=\"https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/Custom-1-1024x576.png\" class=\"attachment-large size-large wp-image-17197\" alt=\"Accise e IVA - Direct from Italy\" srcset=\"https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/Custom-1-1024x576.png 1024w, https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/Custom-1-300x169.png 300w, https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/Custom-1-768x432.png 768w, https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/Custom-1-1536x864.png 1536w, https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/Custom-1.png 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ae79dc9 elementor-widget elementor-widget-spacer\" data-id=\"ae79dc9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c8db352 elementor-widget elementor-widget-heading\" data-id=\"c8db352\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Tax and customs penalties: a problem for the company too<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4ed4406 elementor-widget elementor-widget-text-editor\" data-id=\"4ed4406\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><strong>Improper handling of orders for foreign private individuals doesn\u2019t only put the customer at risk but, above all, the company.<\/strong><\/p>\n<p><strong><b><span style=\"text-decoration: underline;\">Let\u2019s talk about VAT payment<\/span>.<\/b> Tax authorities will trace back to the company that sold the goods, imposing<b> fines for non-compliance with the regulations<\/b>. For example, for <b>sales to European private customers<\/b>, it is necessary to comply with the <b>OSS (One Stop Shop) Regime<\/b> and its thresholds, requiring the company, once it reaches \u20ac10,000 in direct sales revenue, to <b>remit VAT to the destination state on a quarterly basis<\/b>. In any case, even if VAT must be paid in Italy, <b>it must also be paid on excise duties<\/b>: it goes without saying that if the company doesn\u2019t pay them, a tax irregularity is still committed.  <\/strong><\/p>\n<p><strong><b>Failure to submit the quarterly declaration<\/b>, which must be filed even in the absence of transactions, can lead to <b>fines <\/b><b>ranging from 120% to 240% of the VAT owed in the State<\/b>, with a minimum of \u20ac200. The fine is, instead, between \u20ac250 and \u20ac2,000 for violations related to the content of the quarterly declaration (<b><i>Source: <a href=\"https:\/\/documenti.camera.it\/leg18\/dossier\/testi\/FI0146.htm?_1616808151985\" data-cmp-ab=\"2\">Chamber of Deputies &#8211; documents<\/a><\/i><\/b>). <\/strong><\/p>\n<p><strong><b><span style=\"text-decoration: underline;\">Let\u2019s talk about customs duties<\/span><\/b>. Customs regulations vary from country to country, and penalties can be just as severe. <b>In Europe<\/b>, for example, failure to declare or incomplete payment of excise taxes leads to <b>the seizure or confiscation of goods<\/b> and <b>economic fines<\/b>. In the case of <b>late payment in Italy,<\/b> fines can reach <b>up to 30% of the amount owed<\/b> (<b><i>Source: <a href=\"https:\/\/www.adm.gov.it\/portale\/en\/ravvedimento-operoso\">Customs and Monopolies Agency &#8211; voluntary disclosure<\/a><\/i><\/b>). It is also important to note that when authorities find an irregularity, they will retrospectively check the company\u2019s direct sales. <b>If it is noticed that irregularities occur systematically, the fines will become significantly more severe<\/b>. This can include more frequent inspections, higher fines, and export bans.    <\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d18dc74 elementor-widget elementor-widget-text-editor\" data-id=\"d18dc74\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Now try to imagine even a single incorrect sale from a tax and customs perspective: adding up the fines, the cost is certainly not negligible.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c6c70e1 elementor-widget elementor-widget-image\" data-id=\"c6c70e1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"800\" height=\"450\" src=\"https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/24-1-1024x576.png\" class=\"attachment-large size-large wp-image-17193\" alt=\"Accise e IVA - Direct from Italy\" srcset=\"https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/24-1-1024x576.png 1024w, https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/24-1-300x169.png 300w, https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/24-1-768x432.png 768w, https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/24-1-1536x864.png 1536w, https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/24-1.png 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bcc3996 elementor-widget elementor-widget-spacer\" data-id=\"bcc3996\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-833828a e-flex e-con-boxed e-con e-parent\" data-id=\"833828a\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-14572d2 elementor-widget elementor-widget-heading\" data-id=\"14572d2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">And the final customer?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cea1217 elementor-widget elementor-widget-text-editor\" data-id=\"cea1217\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><strong>When a shipment is blocked, not only does the customer experience delays, but they may also be subject to <b>tax checks and fines<\/b>.<\/strong><\/p>\n<p><strong>Put yourself in the customer&#8217;s shoes. It\u2019s easy to imagine how a customer penalized in this way will not only be lost forever but could also <b>leave negative reviews or discourage others from purchasing from the company<\/b>. Writing in your sales policies, for example, that the customer must handle customs duties may seem like a good way to pass the problem to them, but it certainly doesn\u2019t improve the situation, as they are unlikely to read such policies, or if they do, they may refuse to buy the product.   <\/strong><\/p>\n<p><strong>The solution is simple: <b>offer the customer a transparent shopping experience without hidden traps<\/b>, so you can continue the loyalty process in the long run.<\/strong><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7550600 elementor-widget elementor-widget-image\" data-id=\"7550600\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"450\" src=\"https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/25-1-1024x576.png\" class=\"attachment-large size-large wp-image-17195\" alt=\"Accise e IVA - Direct from Italy\" srcset=\"https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/25-1-1024x576.png 1024w, https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/25-1-300x169.png 300w, https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/25-1-768x432.png 768w, https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/25-1-1536x864.png 1536w, https:\/\/www.directfromitaly.it\/nuovosito\/wp-content\/uploads\/2024\/10\/25-1.png 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-20d7400 e-flex e-con-boxed e-con e-parent\" data-id=\"20d7400\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-faa2385 elementor-widget elementor-widget-spacer\" data-id=\"faa2385\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-757e2c1 elementor-widget elementor-widget-heading\" data-id=\"757e2c1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">The solution is not to ignore the rules!<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b3143ca elementor-widget elementor-widget-text-editor\" data-id=\"b3143ca\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><strong><b>Customs and tax regulations are not aspects to be neglected<\/b>. Ignoring or bypassing them may seem convenient, but as you\u2019ve read, it causes <b>irreparable economic and reputational damage<\/b>. Investing in the proper management of international shipments not only protects your company from fines but also improves the customer experience, ensuring trust and loyalty in the long term.  <\/strong><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>&#8220;In the direct sale of alcoholic beverages to foreign private individuals, ignoring tax and customs regulations can lead to fines and damage to your reputation. But what exactly happens if you disregard excise duties and VAT?&#8221; More and more Italian wineries, breweries, and distilleries are selling directly to foreign customers, leveraging both physical stores and [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":11956,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-11999","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What are the risks of ignoring excise duties and VAT when selling to private foreign customers? - Direct From Italy<\/title>\n<meta name=\"description\" content=\"In the direct sale of alcoholic beverages to foreign private individuals, ignoring tax and customs regulations can lead to fines and damage to your reputation. 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