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Accounting and invoicing for dropshipping stores

Sell in the shop, buy from the supplier, ship directly to the customer: dropshipping separates sale and goods and produces two documents per order. Saldiqo writes the invoice to the customer, records the supplier invoice as an expense and shows what is left between selling price and purchase.

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What comes up for dropshipping stores

Two documents per order

The customer gets an invoice, the supplier sends an invoice to you. Both belong together.

Suppliers abroad

Many suppliers sit outside the EU. Customs and tax are special topics.

Small margins

Fees, advertising and returns shrink the margin. Without a report you notice late.

How Saldiqo helps

  • Invoice to the customerFrom the order or CSV.
  • Record supplier invoicesAs an expense with a cost centre per supplier.
  • ReturnsCredit note and supplier refund separately.
  • Margin in viewReport per cost centre.

Typical invoice lines

Examples that often appear on invoices in this industry. You set the prices yourself.

  • Items as per order
  • Shipping as per order
  • Supplier invoice as per receipt
  • Credit note: return
  • Payment provider fee
  • Ad costs as per receipt

Tax and invoicing in the UK

What applies to invoices in the UK, in short. As of October 2026.

VAT
Standard rate 20 %, reduced rate 5 % and zero rate 0 %. Saldiqo calculates each invoice line with the rate you pick.
VAT registration
You must register once your taxable turnover passes £90,000 over any 12 months, or you expect to pass it within the next 30 days. You can deregister below £88,000. Until you are registered, your invoices show no VAT, and Saldiqo adds up your 12-month turnover for you.
What goes on an invoice
If you are VAT registered: your VAT number, the tax point, unit prices and the VAT total in pounds. A limited company shows its registered name on every invoice, and its company number, registered office and part of the UK on letters, order forms and the website.
E-invoicing
There is no mandate today. From April 2029 e-invoicing is planned for all B2B and B2G sales that carry VAT, through Peppol. The exact date and standard are not yet in law, and the government’s roadmap follows with the Budget on 28 October 2026.
VAT returns
VAT returns go to HMRC through Making Tax Digital, usually quarterly, due one month and seven days after the period. Saldiqo shows sales and VAT per rate and exports CSV. It does not submit to HMRC, and for Making Tax Digital you need software recognised by HMRC.
Record keeping
Keep VAT records for 6 years.
Late payment
Statutory interest on late business payments is the Bank Rate (3.75 % in the second half of 2026) plus 8 points, so 11.75 %. On top comes fixed compensation of £40, £70 or £100, depending on the amount owed (under £1,000, from £1,000, from £10,000). Consumers have no statutory interest.
Getting paid
Your sort code and account number are on every invoice. Customers pay by Faster Payments or Bacs, and banks check the account name with Confirmation of Payee. There is no QR standard in the UK.

Frequently asked questions

How do I treat purchases from suppliers outside the EU?

You record the invoice as an expense. Customs and import VAT you clear with your tax adviser.

How do I see the margin per supplier?

With cost centres per supplier.

Do dropshipping stores in the UK have to charge VAT?

Only once they are VAT registered. Registration is required when taxable turnover passes £90,000 over any 12 months, or is expected to within the next 30 days. Below that you may register voluntarily. If you are not registered, you must not show VAT on your invoices.

Do dropshipping stores in the UK need e-invoicing?

Not today. A mandate for B2B and B2G sales with VAT is planned from April 2029, and the details were still open as of October 2026. You can keep sending PDF invoices for now.

How long should dropshipping stores keep invoices?

Keep VAT records for 6 years. You can store receipts digitally in Saldiqo. The legal duty to keep records stays with you.

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Write invoices, match payments, collect receipts and send reminders: free and without a trial period.

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As of October 2026. General information, not legal or tax advice, without guarantee. For your case ask your tax adviser.