As it is known, from July 1, the VAT exemption for foreign markets of small value, which is valid today, will be abolished, a fact that will increase the cost of purchases while, at the same time, the procedure for imposing VAT on markets from other countries is changing. of the European Union.
ΟThese changes come from the application of the new pan - European rules in VAT regime imposed by the EU from 1 July 2021.
The aim of the new regime is to ensure that VAT is now paid in the country where the consumption of goods and services takes place, thus offering, a level playing field for business, between EU Member States and third countries, as well as between the e-commerce industry and traditional shops.
Also, according to the Commission, the new rules aim to prevent and suppress it tax fraud, which is particularly flourishing within the EU, with the trick of "Missing merchants" and "Carousel".
What changes from the 1st of July
In particular, from 1 July 2021, the VAT exemption for the import of goods whose value is up to 22 euros.
Today, the specific markets are not charged any taxes, except for the transport ones, a fact that has skyrocketed the markets, especially since China, but also from eBay, Amazon and other platforms.
However, apart from the imposition of VAT, which amounts to 24%, there is a risk that Greek buyers of goods from China will be charged customs duties.
In such a case, the cost will be prohibitive and the specific purchases will simply stop.
VAT increase in EU markets as well
At the same time, an increase in the charge is expected for purchases from other European Union countries. Today, the Greek who buys a product from Germany, which is subject to the normal rate, is subject to VAT 19% applicable in Germany.
From the 1st of July the regime changes and the same product will be charged with VAT 24% that is valid in Greece.
That is, VAT will be levied by the country of consumption of the product, based on the rate applicable under domestic tax law and not by the exporting country.
The fact that Greece has one of the highest VAT rates among EU countries (24%) means that the final cost of goods purchased from abroad will increase.
The highest normal VAT rate has the Hungary 27%, the Sweden, Denmark and Croatia 25%, while the same VAT rate as in Greece has the Φινλανδία.
The rest of the EU countries have a lower normal VAT rate.
The new Banggood Express service that relieves you of the stress of customs and VAT
Το Banggood informed us today that he started using the method BanggoodExpress almost in its products coming from the store's warehouses in China and not from European warehouses, as you will see below.
This shipping method (BanggoodExpress) according to Banggood is not affected by changes in VAT coming from July 1, as he has already prepaid VAT and duties, so you will not have to pay anything more when the package arrives in Greece.
The Banggood now cooperates with Comet for the new service BanggoodExpress, and the cost will range between € 0-3 depending on the product you buy .
Clarifications
- Basically nothing changes what we knew so far in the markets from China for value goods over 22 €, as most stores also have warehouses in Europe, but at the same time in markets directly from China, the stores offer the option of "safe shipping methods", such as shipping via Priority Direct Mail / EU Priority Mail / EU Priority Line, in which we do not pay customs.
- In the markets that are worth up to € 22 The Banggood as we said above, applies the new Banggood Express shipping method which you should choose for this value goods you buy directly from China and not from their European warehouses.
The same or similar policy is expected to be followed soon by the other well-known stores in China.
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