Costs of Shipping and Taxes

Delivery Services Credits

Unless you post-pay, use of the YubiEnterprise Delivery service entails purchasing Delivery Services Credits to cover shipping and taxes.

YubiEnterprise Delivery Shipping/Services Credits are prepaid shipping fees, a Shipping Credits SKU that is bought prior to any shipments. For each shipment request, YubiEnterprise Delivery will automatically deduct the appropriate shipping fees from the pre-paid credits and calculate the product taxes based on destination address and shipping taxes based on location from which the products are shipped.

At the end of every month in which shipment requests are made, Yubico invoices you. If Example Corp issues a purchase order (PO) in November for products plus Delivery Services Credits for shipping and taxes (on both products and shipping) and products were shipped in January and June, in addition to the invoice for the original PO, Yubico would send Example Corp invoices in January and June aggregating the individual shipments dispatched in those months, reconciling the credits with the actual amount charged.

Delivery Shipping/Services Credits must be used within the period of time specified in your contract (generally one year for Perpetual customers and three years for Subscription customers), after which the credits expire (for more information, see the Delivery Addendum to Yubico’s Terms and Conditions).

Yubico can work with you to determine how much to fund in shipping and tax/VAT credits as you project the number and size of shipments. In any case, it is possible to add the Shipping Credits SKU to any subsequent purchase order.

The apportioning of the taxes / VAT across shipping and product is shown:

  • On the invoice sent at the end of the month in which shipping was requested.

  • On the Console - each shipment request that is made is assigned an ID. To display the tax or VAT charged for any given shipment, on the Shipments tab or the Dashboard tab, click on its Id in the lists of shipments and recent shipments.

    _images/shipment-request-popup-showing-cost-apportioning.png

    Shipment request popup showing apportioning of shipping costs and taxes/VAT

Shipping

Shipping costs are determined at the time of shipping. They are based on:

  • The weight/size of the package
  • Destination
  • Type of shipment, expedited or normal.

Sales Tax/VAT on Shipping

The VAT or sales tax charged for shipping is distinct from the VAT or sales tax charged for the product itself. Sales tax or VAT is charged on shipping costs at the rate imposed by the location where the shipment originates. Currently, this is:

  • California for products shipped to the US and Canada
  • Sweden for products shipped to Europe and other destinations outside the US and Canada.

Sales Tax/VAT on Product

Yubico calculates product taxes based on shipment destination. When the Delivery Services Credits are purchased and invoiced in advance, the rate charged is 10% for US and Canadian destinations. Products are taxed at the actual tax rates of shipping destination, and the customer is charged by aggregating individual shipments at the end of each month in a consolidated invoice. At the end of each month in which shipments are dispatched, Yubico’s invoice shows the reconciliation of the Delivery Services Credits purchased with the amounts actually charged.

Method of Calculating VAT

  • If you are based in the Netherlands, Yubico charges VAT on the initial invoice.
  • If you are based in the EU but not in the Netherlands and you provide a valid non-Netherlands EU VAT number, no VAT is charged on the initial invoice.
  • If you are based in the EU but not in the Netherlands and you do not provide a valid non-Netherlands EU VAT number, VAT is charged based on shipment source, which is the Netherlands.

Exemptions

Sales Tax

To claim exemption from sales tax, you must present to Yubico the sales tax exemption certificate for the location to which the product is being shipped.

VAT

To claim exemption from VAT, you must present the VAT number; treatment varies depending on the country. Yubico does VAT reconciliation at the end of the month. It will then credit the customer with the amount of the tax charged on both product and shipping.