The European Commission has taken strong measures, and tariffs may increase by 20% to 30%!

French media reported that the European Commission will impose tariffs on small parcels from third countries that have not paid import taxes and value-added tax so far, and tariffs may increase by 20% to 30%.

French consumers who are used to ordering goods on Amazon, AliExpress and Wish may face a general increase in commodity prices in the coming months, as the European Commission will strengthen the control system for parcels from third countries in the EU. Products shipped from China are usually exempt from tax, although these products have a considerable share on e-commerce platforms.

According to current regulations, low-priced goods below 22 euros are exempt from VAT. However, according to EU spot checks, the probability that sellers of small direct parcels (below 22 euros) will ship in accordance with regulations is 3%. This loophole has led many unscrupulous businesses to use it to evade taxes.

Due to the pandemic and economic stagnation last year, European officials began to worry about the current fiscal shortages facing the EU, so they decided to increase the control of import taxes and value-added taxes in response to this situation. In order to solve the problem of illegal tax evasion, the EU decided to directly cancel the VAT exemption policy for low-priced goods (less than 22 euros) imported from non-EU countries to the EU .

As part of the Import Control System 2 (ICS2) project, the European Commission has also introduced a new declaration system for all "express" air shipments from March 15. From July 1, 2021, they will also require sellers to pay VAT. This regulation will initially only cover express parcels, but will begin to apply to all air shipments from March 1, 2023, and will cover all imports from third countries by land, sea and rail by 2024.

French media analyzed that this regulation will increase the price of goods from China by 20% to 30% , including 20% ​​value-added tax and 10% various fees that sellers must bear to comply with European standards.

This measure is likely to have a significant impact on the future of the French e-commerce industry: on Amazon, 58% of products are provided by third-party sellers. Cdiscount claims that one-third of the 12,000 merchants on its platform are international sellers located outside the EU. Not only products from China, but also third-party sellers from the UK or the US will be affected by this measure.

According to data disclosed by French media, 98% of Asian sellers are not registered for VAT in France. When asked about this issue, AliExpress said: "Merchants on our platform are responsible for complying with the rules and regulations that apply to them, including sales, tax or customs declaration rules related to transactions they conduct with buyers."

Amazon said: " If we receive clear information that a seller is not complying with VAT regulations, we have procedures in place to review the account and will restrict the seller from withdrawing funds from the account. "

logistics

VAT

European Union