E-commerce: Why will ordering online soon be more expensive?

E-commerce: Why will ordering online soon be more expensive?

As of July 1, 2021, online platforms will have to pass on the amount of VAT on all purchases from outside the European Union and no longer only on purchases exceeding €22. The State will be able to recover several billion euros. For the consumer, the amount of invoices will increase, and additional delivery times are expected this summer.

The world of e-commerce will undergo a small upheaval with repercussions on our wallets and on the state’s coffers. As of July 1, all packages from countries outside the European Union will be subject to VAT, reports Le Parisien. Until now, only orders over €22 were concerned. VAT will now be applied from the first euro spent outside the EU. This is the application of a European directive of 2017, says the Parisian daily.

Ordering online and then having your package delivered from a country outside the EU will therefore be more expensive. Le Parisien takes the example of a package from abroad worth €10. It will be taxed at 20%. The government will charge an additional €2 of VAT, which will raise the price of the order to €12.

Delays in delivery

This directive targets some well-known platforms that offer low-cost items such as Alibaba, Aliexpress, Wish or Shein. The aim is to fight against unfair competition. The repercussions will not only be financial for the consumer. He will also have to expect to receive his parcel with delay because of the multiplication of the customs controls.

In the past, it has been said that “fraudsters could mislabel high-value goods as having a value below the €22 threshold, thus making them escape VAT” “unacceptable one billion euros in revenue”

Another consequence of the application of this measure concerns the state coffers. “In France, we will go from 15 million electronic customs declarations to 450 million,” said the Minister of Public Accounts, Olivier Dussopt. This will allow us to collect several billion.