New EU rules regarding VAT, Mail handling costs, import duty on items from outside the EU from JULY 1st

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jph
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New EU rules regarding VAT, Mail handling costs, import duty on items from outside the EU from JULY 1st

#1 Post by jph » Thu Jun 10, 2021 8:14 am

Hi guys. Got an interesting text from CTT -the Mail service in Portugal - regarding new EU regulations for items ordered from non EU countries. It comes into force from July 1st.
Just wondered if the other EU guys have got the same info ?

Basically, at the moment, any item ordered from outside the EU - up to a value of 22 euro (around 25 dollars) does not attract any attention at all from the postal or customs service.
From July 1st. ALL items, regardless of cost will be subject to VAT (unless paid at source) AND a mail service handling fee. It appears that here in Portugal that the item will be held in customs until the documentation has been submitted - prior to release - including supplying an order invoice - proof of payment etc.
The VAT really isn't too much of an issue, but the 'handling charge' can be quite high - often more than the VAT on lower cost items.
Items of more than 120 Euro cost (including shipping) will also incur import duty.
When this comes into force on July 1st, it apples to any item ordered BEFORE of AFTER July 1st.
That makes it more 'interesting' for items from AliExpress, Banggood etc etc. Also, for anyone in the UK wanting to sell to the EU then it could well be a major headache - especially for things like Ebay.
It looks like someone selling from the UK to the EU, on Ebay, -a second hand item - at, say 50 quid, would be charged 10% commission by ebay, then the person receiving the item would have to pay 23% VAT AND handling charges before the item was released from customs in Portugal.
As it is an EU directive, It should apply in all other EU countries. Any other EU guys had a similar notification ?
It''s not a big issue really providing you know what to expect but would possibly come as one hell of a shock otherwise ;).

Also note the mention of the PLACE OF ORIGIN for the order. !. important,, as for example, banggood and Aliexpress often offer a shipping from within the EU. BUT that is still subject to all costs as it is based on the site you ordered it from. - ie - you order from AlI-EX IN China, To be shipped from Germany. then it still is classed as being ordered FROM outside the EU hence subject to all regs.

Here is the Portuguese site (you can auto translate in Chrome)
https://www.ctt.pt/novas-regras

Certainly worth noting. I don't know yet what the supposedly 'reduced' handling charges are - or if they are on a sliding scale with item cost. They probably have a minimum cost - something like 10 euro :? (I hope it is less..) so caveat emptor.
Would be interested in other EU member states implementation ? - ie @Ralph ? - have you had a similar notification ?

Joe :)

I must confess, it is probably fairly good as it simplifies AND standardises the crazy and often unfathomable costs and duty amounts relating to different countries that have been in force for years. It is just a shame that the under 22 Euro area is to be removed.
“Everything in moderation, including moderation.”
“Experience is merely the name men gave to their mistakes.”
Joe (CISSP) -IT security consultant

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