Why it will be more expensive to buy in online stores like AliExpress from July
Purchases from countries outside the European Union will become somewhat more complicated starting this year. It will be mandatory to pay VAT for any product arrived from other countries.
The Import One-Stop Shop (IOSS) will enter into force on July 1, 2021 applying a change in the obligations of electronic commerce with VAT on imported products. The advantage that these purchases have enjoyed until now comes to an end.
Until now, it was not necessary to pay VAT on the import of commercial goods whose value was less than 22 euros. This is going to change in the next month. The European Union defends that this measure shifts the obligations to suppliers and electronic interfaces that sell imported products to buyers in the EU.
They should “collect, declare and pay VAT to the tax authorities, rather than having the buyer pay VAT at the time the products are imported into the EU“as it happened until this month of June.
This situation was partly beneficial for users who bought products below a cost of 22 euros. They did not have to worry about customs formalities and could get more advantageous prices. However, some sellers in Asia took advantage of this possibility to declare many products for less than real value and thus pass through the border without problems.
The IOSS will apply to both sellers and online platforms on any product sent or transported to an EU country at the time of sale, products or orders that do not exceed 150 euros and that they do not have a special tax such as alcohol or tobacco.
Therefore, all companies that import products of any kind from outside the EU must have a VAT number or IOSS-VAT, assigning an intermediary company that will collect VAT when the product steps on community soil. Companies such as AliExpress or Amazon and their third-country sellers They will apply that VAT to the products and send them with the data and the money to comply with the new regulations.
The objective of this measure is to prevent tax evasion that occurs in these bargains, especially from China, which consumers take advantage of online. The result is soon to see it, but everything indicates that mobile phones and other devices will be sold with a more consistent price and similar to that offered by most internet stores, matching the competition a little more.