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Service Update

On 1st January 2010, EU directive 2008/8/EC will come into effect. This directive regulates the payment of Value Added Tax (VAT) for supply services dependent on the place of consumption and the type of consumer (business vs. private).

The directive's implementation impacts UPS's third party billing processes and offers UPS customers additional options:

  • Customers who send domestic shipments within an EU country may now bill to a third party in another EU or non-EU country.

  • Customers who send shipments between EU countries may now bill to a third party in an EU or non-EU country.

Customers who send packages between two non-EU countries and choose a third party payor in an EU country need to be aware that VAT will have to be paid in the third party's country of residence. This charge will feature within the duties and tax charges.

All third party payors for UPS shipments must fulfil the following criteria:

  • Be a business located in a valid third party bill-to country
  • Have a tax or VAT I.D. on file with UPS
  • And have a 6-digit UPS account number

The changes not only allow more scope for third party billing but also simplify the billing process for multinational customers with centralised invoicing.

Should you have any questions, please contact your sales representative or call UPS at 1-800-57-57-57.

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