EU Changes VAT Rules for Imported Products; Everything to be Taxed Independent of Value


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European Union residents are now looking at paying even more tax – in even more products – than before. Following changes to the EU tax policy, all products imported from outside that special political, economic and frontier union will be subject to the appropriate tax according to its nature. Until now, imports of value (or should we say declared value) lower than €22 were free from the bureaucratic and economic burden of taxation; however, that situation is about to change come July 1st.

Following abuses to that €22 declared value exemption, all imported products from July 1st 2021 will be subject to customs processing and taxation. The decision follows years of abuse, with customers and businesses declaring false, lower values for products so as to try and skirt any additional taxation. Of course, this creates a lopsided, uphill battle for EU-based manufacturers and distributors, who have to collect the appropriate tax upon all sales – whilst businesses outside the EU enjoyed more competitive pricing due to the absence of tax for the final customer. That is what this change aims to fight against. A shame for users and businesses that did follow the rules, who now face more higher pricing for small acquisitions at the expense of those who employed these tax evasion practices.

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