Friday, June 18th 2021
EU Changes VAT Rules for Imported Products; Everything to be Taxed Independent of Value
European Union residents are now looking at paying even more tax - in even more products - than before. Following changes to the EU tax policy, all products imported from outside that special political, economic and frontier union will be subject to the appropriate tax according to its nature. Until now, imports of value (or should we say declared value) lower than €22 were free from the bureaucratic and economic burden of taxation; however, that situation is about to change come July 1st.
Following abuses to that €22 declared value exemption, all imported products from July 1st 2021 will be subject to customs processing and taxation. The decision follows years of abuse, with customers and businesses declaring false, lower values for products so as to try and skirt any additional taxation. Of course, this creates a lopsided, uphill battle for EU-based manufacturers and distributors, who have to collect the appropriate tax upon all sales - whilst businesses outside the EU enjoyed more competitive pricing due to the absence of tax for the final customer. That is what this change aims to fight against. A shame for users and businesses that did follow the rules, who now face more higher pricing for small acquisitions at the expense of those who employed these tax evasion practices.
Source:
World Customs Organization
Following abuses to that €22 declared value exemption, all imported products from July 1st 2021 will be subject to customs processing and taxation. The decision follows years of abuse, with customers and businesses declaring false, lower values for products so as to try and skirt any additional taxation. Of course, this creates a lopsided, uphill battle for EU-based manufacturers and distributors, who have to collect the appropriate tax upon all sales - whilst businesses outside the EU enjoyed more competitive pricing due to the absence of tax for the final customer. That is what this change aims to fight against. A shame for users and businesses that did follow the rules, who now face more higher pricing for small acquisitions at the expense of those who employed these tax evasion practices.
65 Comments on EU Changes VAT Rules for Imported Products; Everything to be Taxed Independent of Value
I still have a package coming from Aliexpress and now I hope it gets here before July else it will get taxed.:shadedshu:
I liked to order small stuff from China and so did my family, stuff we can't even buy here or way more expensive but now this option is also out of the window or at least becomes very questionable.
I'm not from a wealthy country to begin with but ofc lets make us pay even more.:banghead:
Only workaround is to find sellers who have warehouses/stock in EU but for now thats not too common and most of the time the stuff I want to order doesn't have it as an option.
The law should have included that if a package was shipped before the 1st of July 2021 and official post stamp said the same or you could prove the order was before they should let the package through with no tax.
They will still want that revenue..................
Glad Britex hopefully exempts the UK
ps i only buy from UK Source's/ Stock since we exited the EU
to much hassle to deal with EU since then
but overall yes I agree with you.
In my mid EU country not exactly high on the list, ~3 euro/hour is like normal and average and even less is not that uncommon for most of the crappy jobs that a lot of ppl have here. 'myself included'
Now mix that up with 27% VAT and now this extra tax on foreign/Asian ordered things, yea what else did we needed right.:rolleyes:
www.avalara.com/vatlive/en/vat-news/uk-post-brexit-vat-on-e-commerce-b2c-imports.html
On January 1, 2021 – the United Kingdom's tax authority, HMRC, changed the VAT rules on the import of ecommerce goods into Great Britain. This impacts both sellers and marketplaces for goods being sold into the UK. The new rules also include businesses that facilitate marketplaces, who are now also liable for the collection of VAT from overseas sellers. The EU is implementing a similar ecommerce VAT package from 1 July 2021.
...
The UK B2C ecommerce and marketplace VAT reforms included:
* All imported goods purchased are subject to VAT – ending the £15 VAT exemption thresholds, (known as Low-Value Consignment Stock relief).
EU souring the milk and making money at the same time
I rarely if ever buy from the EU warranty is overly complicated so makes it useless if the business doesn't have a rma center in the USA it's a easy pass.
As far as current admin not dropping tariffs well they do like free money and can blame prior admin for it lol
Good for the mines I suppose, not so good when you need 2 million pounds for construction projects........................
Australia did this a while back, bringing in tax on low value imports and people still buy goods, surprise surprise.
With smart chinese seller, you can manage to have a 20€ payment for the 200€ product, having the same 20€ on the box, and after that, you will buy a sweet little "nothing" from the seller for 180€ which he'll never ship.
This was the real trick. And customs can't do much with a 200€ product in hand with a 100% legitimate invoice of 20€... Even if they know it costs 200€.