New EU rules coming into force on July 1st will mean that all packages bought outside the European Union will be significantly more expensive. From next month, online shoppers will have to pay VAT on all packages, including those with a value below 22 euros.
Parcels from outside the EU will be 21 percent more expensive
For example, this change in the law will make packages purchased and shipped from the United States and China 21 percent more expensive. In addition, online stores that do not collect VAT immediately at checkout will receive another four or seven euro increase to cover additional processing costs.
Anyone who makes regular international purchases should therefore pay close attention to whether the retailer participates in the EU's so-called one-stop shop system and charges VAT at the checkout. The new law also applies to all packages purchased before July and not due until next month should arrive.
AliExpress and Etsy have announced that they will charge VAT at checkout
Online shops like Wish and AliExpress, which are outside the EU but are popular in the Netherlands, will therefore increase their notoriously low prices this summer. AliExpress and Etsy have said they charge VAT at checkout. The UK online Clothing retailer ASOS has not yet announced what action it will take.
The EU expects that the new VAT law will bring in a total of around seven billion euros per year for the member states.
