The exemption from VAT of foreign markets of small value, which is valid today, is abolished, a fact that will increase the cost of purchases while, at the same time, the procedure for imposing VAT on markets in other European Union countries is changing.
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.
Hungary has 27% higher VAT rate, Sweden, Denmark and Croatia 25%, while Finland has the same VAT rate as Greece.
The rest of the EU countries have a lower normal VAT rate.
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 and shipped directly from warehouses in China, the Banggood for example he gives us his choice Tariff Insurance, and in case the parcel passes through customs and has duties, we will send them the receipt from ELTA with the indication of the amount we paid, and the corresponding amount that we have additionally charged, will be returned to us through PayPal no later than five working days.
The other well-known stores from China are expected to follow the same policy.
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