As online shopping continues to grow, the European Union is planning to implement new regulations to protect local e-commerce sellers. One significant change affects consumers who shop on international platforms like Temu or AliExpress.
EU to protect domestic e-commerce sellers with a cross-border tax reform
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Author: Stefan Ditrih
Category:
Fiscal subject related
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119
Content accuracy validation date:
20.08.2024
Content accuracy validation time:
09:22h
The EU has already taken some steps at the first sign of growing foreign e-commerce sellers, and since July 1, 2021, all goods entering the EU, regardless of their value, are subject to Value Added Tax (VAT). This change removed the previous VAT exemption for consignments valued at less than €22. Consequently, even small purchases from foreign sellers will incur VAT charges, making international shopping slightly more expensive for EU consumers.
Currently, packages purchased online from non-EU countries are not subject to customs duties if their value is under €150. However, the European Union plans to abolish this exemption threshold. This means that in the near future, all goods, regardless of their value, will be subject to customs duties. The plan is to implement this change by March 2028.