VAT Exemption removal from 1 July
Please note: from 1 July 2021, the VAT exemption will expire on import shipments from countries outside the EU. As a result, the exemption limit of € 22 no longer applies, and VAT must be paid for all shipments. Depending on the mutual agreement between the sender and receiver, one of these two parties will be charged with these costs.
The European Union (EU) wants to create a level playing field between entrepreneurs within and outside the EU. A consumer who now orders a watch strap of € 20 from China, does not currently pay VAT. But when he buys the same watch strap within the EU, he pays 21% VAT, and the watch strap costs € 24.40 in total. This means that the product bought in the EU is more expensive than bought from China. The EU wants to equalize this and therefore applies the 21% VAT rate to all purchases entering the EU. This rate is calculated on the value of the goods and the total freight costs.
If you have any questions on this subject, please do not hesitate to contact our Customer Service. Our team of Certified International Specialists are ready to assist you.
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