AliExpress’ response to the new EU tax reform from July 1, 2021

Until now, packages below €22 were free from VAT in most countries in the EU. That meant that those packages entered most EU countries without extra fees or taxes.

A new VAT regulation enters effect on July 1 and the VAT-free limit will be abolished.

Any orders that arrive in the EU from that day will need to pay VAT + a handling fee for importing the package. The handling fee depends on the country you live in but could be anything between €15 and €30 or more.

As orders can take a long time, any order from now on risks getting delivered after July 1 and get charged with extra VAT and handling fees. So you may consider holding off on new orders unless you choose a fast shipping method.

From July 1, Aliexpress will probably charge VAT during checkout, to avoid any extra charges during import. As far as I understand, these are bilateral agreements between Aliexpress and each individual country, so things may differ from country to country. It is not guaranteed that some countries won’t still charge handling fees, we’ll have to see.

In the UK, the start of the new regulation was already the case from January 1 and packages arrive in the UK without extra fees.

We will be happy to hear your thoughts

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