Invoicing in Dropshipping and International Sales

The appeal of dropshipping is clear: you don't hold inventory, you don't rent a warehouse, and you don't deal with shipping.

However, the situation is different when it comes to taxes and documentation: since you are the one selling to the customer, all liability lies with you.

"I never touch the product" is not an excuse

This is the most common misconception. Never having seen the product does not mean you are not a seller.

The customer pays you, the contract is established with you, and the responsibility for returns and warranties is yours. Therefore, the sales revenue is yours, and the obligation to issue invoices is yours as well.

The document chain has two legs: the supplier issues a purchase invoice to you, and you issue a sales invoice to the customer. The difference between the two is your profit.

If you cannot get documentation from the supplier, it means you have a serious problem: the cost of your sale remains undocumented, and your entire revenue is taxed as profit.

Working with an overseas supplier

If the product comes from abroad, import rules kick in. If the product enters Turkey, customs declarations, customs duties, and import VAT come into play.

The shipping company sending the item declared as a "gift" or low value does not exempt you from importer liability. On the contrary, low declaration is a separate risk.

As for services purchased from abroad, the issue of full withholding tax may arise; check out our article on how to issue an invoice with withholding tax.

Selling abroad: micro-exports

If your customer is abroad, this is an export transaction. There is a simplified process for low-volume shipments carried out via the Electronic Commerce Customs Declaration (ETGB).

In ETGB, transactions are usually handled by the shipping company; you issue the invoice, and they take care of the rest. This is also the way to benefit from VAT exemptions.

For document types and scenarios, check out our article on how to issue an export invoice. For exchange rate differences arising from collections, our article on what an exchange rate difference invoice is will guide you.

Calculating profit accurately

Since margins are narrow in dropshipping, hidden costs can easily wipe out profits. What needs to be factored in:

Platform commission. It is deducted from the sales amount and needs to be recorded as an expense. Writing down the commission-deducted amount as revenue is incorrect; the invoice must be issued over the gross sale, and the commission becomes a separate expense.

Payment gateway deductions. A frequently overlooked item.

Returns and lost shipments. In international shipments, the cost of returns can exceed the product price. We covered the documentation side in our how to issue a return invoice article.

Advertising expenses. Usually the largest item in any dropshipping business. If not tracked on a product basis, it becomes impossible to see which product is truly profitable.

Frequently asked questions

Can I start without registering a business?

If there is continuity and a profit motive, no. We explained the scope of exemptions in our article on e-commerce and artisan tax exemption.

When does the e-invoice obligation start?

For online sellers, the threshold is lower than the general rate. Check out the article on e-invoice thresholds.

Is print-on-demand the same?

Similar in terms of the document chain: even if production is done by someone else, you are the seller.

I don't hold inventory, do I need inventory tracking?

Even if there is no physical stock, product-based cost and sales tracking is necessary; that is the only way to see profitability.

Dropshipping lightens the operations, not the responsibility. Establishing the document chain from the start is much easier than trying to clean it up retroactively when the business grows.

You can open a free account on Qolay.App and view your sales, commissions, and profitability all in one place.