What’s All This Talk About Tax ID?
What Is a Tax ID and Why Is It Required For Some Countries?
For popular destination countries such as Brazil, China, South Korea and Russia, an individual tax ID is required for some or all products in order to perform an import on behalf of the consumer, the official Importer of Record. For these top e-commerce destinations, collecting the tax ID at checkout is the key to a seamless clearance, successful delivery, happy customers and repeat orders!
How Do I Avoid This Requirement?
For national governments that require this data, there is absolutely no getting around it—it‘s the law! E-tailers who are serious about expanding their footprint internationally should collect this crucial information from the consignee at the time of checkout. A tax ID is not the same as a U.S. social security number, and does not need to be protected as such. It can also be referenced by different names depending on the destination country. Most consumers who live in these destinations are fully aware of the data requirement on international orders and actually prefer to provide the tax ID to the e-tailer directly, instead of a local customs broker after the sale. Incorporating these improvements into your website and shopping cart are the types of consumer-focused eFacilitation services that encourage customer loyalty and demonstrate local expertise to consumers placing online orders in the destination country.
What Occurs When a Package Arrives at Destination That Requires a Tax ID?
When the tax ID is not collected at checkout, local customer service teams and brokers are tasked with aggressively calling and e-mailing the consumer in the destination country to gather this bit of information manually. As you can imagine, this can be difficult to achieve quickly; the process often results in delivery delays and costly returns, and can be a huge bother for the consumer. The bottom line is that when the tax ID is required by customs, those packages simply WILL NOT leave customs until the tax ID has been provided, and any applicable duties and taxes have been paid.
So, why not solve the problem at the source? Taking a proactive approach to collecting the tax ID at the time of purchase helps drive a seamless customer experience and attract more international orders on your website.