If you operate a drop shipping business, your transactions must be reported differently from normal sales. To ensure your VAT filings are correct, hellotax requires two separate records for each drop shipping transaction:

1. An acquisition (purchase) – when you buy the goods from your supplier
2. A sale – when you sell the goods to your customer

This means every drop shipping order must appear twice in your data upload.

How to Upload Drop Shipping Transactions

You must use two templates in your hellotax account:

• Expense template → to report the acquisition (purchase from your supplier)
• Sales and refunds template → to report the sale to your customer

Each template contains mandatory columns (marked in green) that must be filled in correctly for the system to process the data.

1. Reporting the Acquisition (Expense Template)

Use the Expense template to record the purchase from your supplier.

Mandatory Fields

Fill in the following fields:

• TYPE: expense
• DIGITAL SERVICE: no
• Invoice Number: Supplier invoice number
• VAT Reporting Date: Date used for VAT reporting
• Arrival Country:
  • The country where you are VAT registered
  • Use the two-letter country code (e.g. DE, FR, IT)
  • Include your VAT number as the buyer
• VAT Country: Same as the arrival country
• Departure Country: Country where your supplier is located (two-letter country code)
• Seller Name: Company name shown on the supplier invoice
• Product SKU:
  • If multiple items appear on the invoice, you may use one of the SKUs
• VAT Rate: If applicable
• Gross Unit Price:
  • Enter the total invoice value (net + VAT)
• Net Price:
  • Must include shipping costs and VAT (if applicable)
  • Include the correct quantity
• Currency: Currency used on the invoice

2. Reporting the Sale (Sales Template)

Use the Sales and Refunds template to record the sale to your customer.

Mandatory Fields

Fill in the following fields:

• TYPE: sale
• DIGITAL SERVICE: no
• Channel: WEB
• Invoice Number: Customer invoice number
• VAT Reporting Date: Date used for VAT reporting
• Shipping Date: Date the goods were shipped
• Arrival Country:
  • Country of the final customer
  • Use the two-letter country code
• VAT Country: Same as the arrival country
• Departure Country:
  • Country from which the goods are considered sold for VAT purposes
• Buyer Name: Name of the customer shown on the invoice
• Product SKU:
  • If multiple products are sold, you may use one SKU
• VAT Rate: If applicable
• Gross Unit Price:
  • Enter the total invoice value (net + VAT)
• Net Price:
  • Must include shipping costs and VAT (if applicable)
  • Include the correct quantity
• Currency: Currency used for the sale

Additional Fields for B2B Sales

If the sale is B2B, you must also fill in the buyer VAT fields (columns N and O).

Important Notes

✔ Each drop shipping order must appear twice in your data (purchase + sale).
✔ Use the correct two-letter country codes (e.g. DE, FR, ES).
✔ Ensure shipping costs are included in the net price.
✔ Follow the instructions in the column headers of the templates to avoid upload errors.
✔ Incorrect or missing mandatory fields may cause the file to be rejected by the system.

Example Drop Shipping Flow

1. You buy goods from a supplier → reported in the Expense template
2. Your customer purchases the goods → reported in the Sales template

This ensures your VAT reporting correctly reflects both sides of the transaction.