From July 1, 2021, new tax rules apply VAT e-commerce, provided for in the EU VAT package e-commerce. The regulations were to ensure fair competition for EU entrepreneurs struggling with companies, including with Chin. One of the most significant changes was the abolition of the threshold of 22 eurobelow which postal items with goods bought in third countries were exempt from tax VAT.
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AliExpress: Our customers can rest assured that there will be no additional taxes and duties
The Minister of Finance, Tadeusz Kościński, did not hide that the EU regulations were a response to competition from the Far East. – This is especially important for domestic brokers, auction and sales portals, which often struggle with unfair competition from outside the EU. The implementation of the e-commerce package will level the chances between honestly operating companies and the competition that floods the Polish market with cheaper packages. Thanks to this, honest entrepreneurs will not be eliminated from the market, Kościński said in June, before the new regulations are implemented.
Gary Topp, CEO AliExpress for the Central and Eastern European market, he said in an interview with the portal money.plthat since the introduction of the new regulations, the company has already delivered 1 million shipments. – According to the latest EU regulations, all taxes are collected from us. Thus, our clients can be sure of efficient logistics without additional taxes and customs duties – he emphasized.
Topp added that all fees are charged on their platform, which makes it easier for customers to shop and guarantees that no additional fees will be added during shipping. He also added that AliExpress has seen a temporary drop in orders, but the company will continue to offer the most competitive prices at about 90 percent. the entire offer. “The impact of these regulations was not as great as expected and feared,” he said.
The EU loses 5 billion a year from ineffective enforcement of VAT and customs duties
Each year, 14 million letters with goods from China are sent to Poland. Products are shipped as letters to avoid additional taxes and duties. The new regulations eliminate not only the exemptions from import VAT, the so-called small parcels worth up to 22 euros. For shipments of goods with a value not exceeding 150 euros, an exemption from customs duties will apply, but payment of VAT will be required. The tax will be paid by online sales platforms.
Poland is the fifth largest market for AliExpress. The high interest in goods from the Chinese platform is primarily related to low prices of goods and low delivery costs. The European Court of Auditors estimates that the undervaluation of shipments and ineffective enforcement of VAT and customs duties on shipments from China and USA EU countries lose EUR 5 billion each year. In Poland, losses from unpaid VAT and customs duty are expected to amount to PLN 1 billion per year.
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