The buyer paid taxes twice. Something went wrong shortly after the EU tax reform policy was implemented?

According to official disclosure by AliExpress, even when the platform collects and pays taxes on behalf of buyers and the buyers have already paid the taxes , the problem of buyers paying taxes twice still arises after the packages arrive at the destination country .

In response to this situation, AliExpress released countermeasures on August 17 .

If the seller ships the goods through the 16 taxed channels of Cainiao Online , AliExpress will refund the taxes and compensate for the relevant handling fees for orders that are taxed twice due to logistics operations.

The 16 tax-paid channels for Cainiao's online shipments include Cainiao Super Economy, Cainiao Super Economy Global, Cainiao Special Line Economy, Cainiao Special Cargo Special Line-Super Economy, China Post Ordinary Small Parcel+, Cainiao Super Economy-Shunyou, Cainiao Super Economy-Yanwen, Ali Express Worry-Free Logistics-Simple, Ali Express Worry-Free Logistics-Standard, Cainiao Special Cargo Special Line-Standard, China Post Registered Parcel, China Post e-Post, 4PX Xinyou Registered Parcel, Yanwen Air Registered Parcel and Ali Express Worry-Free Logistics-Priority.

AliExpress will also refund taxes for orders that are taxed twice, if the goods are not shipped through Cainiao's online tax-paid channels. However, the handling fees in addition to taxes will be borne by the merchants. It should be noted that AliExpress only processes orders paid from August 20 onwards. In other words, for problematic orders that occurred between July 1 and August 20, sellers can only mediate on their own, and the platform will not intervene.

In addition, AliExpress particularly emphasizes that sellers who ship through other channels need to ensure that the IOSS tax number is submitted to the logistics company when shipping, and communicate well with the logistics company to ensure correct operations during the package transportation process to avoid secondary taxation due to errors in the logistics company's declaration method, problems with the waybill display, etc.

The EU tax reform policy has just been implemented, and both sellers and platforms are more or less unfamiliar with the process. This incident also reminds sellers that they need to focus on following up on logistics-related matters, whether on the AliExpress platform or on other platforms such as Amazon and eBay.

The new EU regulations allow overseas merchants to declare goods with a unit price of no more than 150 euros and orders fulfilled by sellers of non-EU registered companies from EU overseas warehouses through the "one-stop service" platform. Goods entering the country are exempt from VAT, and the VAT collection procedures for goods imports are transferred from the import link to the sales link, paid monthly, and no registration is required in other EU member states. This is supposed to effectively simplify the process of goods import declaration, but don't end up losing money and ruining your reputation.

EU tax reform

tax