1st July 2021

The purchase of goods up to € 22 from all third countries (i.e., not only from China) will be increased by VAT and customs duties

As of 1 July 2021, certain provisions of Directive 2006/112/EC on the common system of value added tax and the implementing Regulation No 282/2011 are amended. These are changes which regulate the application of VAT on the level of the entire EU.

One of the fundamental changes affects imports of goods from third countries. This involves abolishing the VAT exemption for goods with a value of up to € 22 and introducing the obligation to lodge a customs declaration.

Currently, shipments from countries outside of the EU with a value of up to € 22 are exempt from VAT and go through a simple customs procedure, which is provided by the carrier or the post office, whereas the consignee does not have to deal with anything.

After 1 July 2021, the obligation to pay VAT will apply to each consignment of goods ordered from third countries by a natural person, and the obligation to file a customs declaration will apply. The customs declaration will be submitted electronically for shipments up to € 150.

It will be possible to handle customs procedures for a fee through carriers (e.g. through the Czech Post or through specialized companies), or separately through the customs administration using the eCep application, which will be available from July.

VAT will be calculated from the value of the ordered goods, from the value of the postage and from any fee for representation in customs proceedings. Payment will be made upon receipt of the shipment from the carrier.

Gifts between private individuals up to the value of €45 are exempt from the obligation to pay VAT. However, a customs declaration will also be required for these consignments.

www.behounek.eu - tax advisor


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