We’ve already informed you several times on our website about the reform from the European Union for cheap purchases from China, or from third countries: click here. AliExpress, as the biggest online marketplace, had to adapt to the reform and they’re now sharing information about new tax obligations.
A lot of people are still using cheap orders from China, so the fear of ordering something from China right now is understandable. But we’ll shed more light on this problem for you.
Updated 1.7.:
AliExpress confirmed VAT on all products
The world's largest Chinese online marketplace, AliExpress, has issued an official statement on the tax reform for parcels imported into Europe. The biggest change is the abolition of the exemption for parcels up to €22, for which tax did not have to be paid until now and which were not held up at customs either. So we avoided 20% VAT as well as the customs processing fees charged by Slovak Post.
From now on, you’ll have to pay VAT for absolutely all parcels, because the EU wants to “balance fairness” between local retail and imports.
It was confirmed that AliExpress will increase product prices by VAT, meaning VAT will be paid right when you place the order on their website. You won’t have to deal with it additionally during customs clearance.
If you can’t find an answer to any of your questions in our article, click the Q&A section from AliExpress dedicated to the new customs rules.
When do the new VAT rules start?
Changes on AliExpress will apply from 1.7.2021, when the EU reform also comes into effect. So all orders from that date onward will be subject to the new rules.
What if I ordered before 1 July?
If you managed to order the products before 1 July 2021, you won’t be affected by any price increases within AliExpress. However, the parcel can still be stopped at customs, because customs now looks at when the parcel arrives in our territory, not the order date. We explain everything in this article.
How will VAT payment work on AliExpress?
As we mentioned, from now on you’ll have to pay additional VAT for products of every value. The tax rate differs by country (in the Slovak Republic it’s 20%), which AliExpress also takes into account. So the product price will be increased by the VAT of that country, and AliExpress will handle the collection of VAT—no matter the product value, as long as we’re talking about delivery to EU countries. Also, if the seller is registered outside the EU. You can see other cases in the image below.
If the seller is registered in the EU, then VAT collection on delivery to a country within the EU will be handled by them. But those sellers are a small minority on the AliExpress marketplace, and almost all are registered in Hong Kong or directly in China.
The VAT item, i.e. VAT, is displayed on AliExpress in the cart. You’ll find it right under the shipping cost.
You’ll see the VAT (i.e. VAT) item in the cart at the first step of checkout. It will appear exactly where the shipping costs are, or where you have a seller coupon discount.
You’ll also be able to get an invoice for each of your new orders. You can find them in your profile in the orders list, and next to each one you’ll see a button to download the invoice.
How will customs duty payments work?
The exemption from customs fees for products up to €150 does not change. Up to this amount, you only pay VAT, and you’re exempt from customs duty. However, you also need to factor in the fee for processing customs clearance, because the product will be stopped at customs for sure. We write about this in our new article, where you’ll also find the new fees charged by the Slovak Post. The sad news is that the fee applies even if you arrange the customs clearance yourself, without authorizing the post office.
The exemption from the customs fee for goods up to €150 does not change. These rules remain the same as they were before.
The amount of customs duty varies depending on the type of product, VAT, shipping, and more. To calculate the exact customs fee, use this calculator.
What if I order a product from an EU warehouse on AliExpress?
Originally, we had information that purchases from EU warehouses on AliExpress would not be increased. However, after the new rules were launched, we found out that the VAT (DPH) is added to the cart even for products from EU warehouses. At the moment, we don’t have information on whether, in addition to this, you’ll face any further increases—meaning paying customs duty (if the package is over €150) or the need to handle customs clearance, which is also subject to fees. More in the article about Slovak Post fees.
Unfortunately, the VAT (DPH) is added on AliExpress even for products stored in European warehouses.
Since the AliExpress platform is registered in Hong Kong and it’s a country outside the European Union, they are required to collect VAT for goods delivered to customers in the EU, including cases where the delivery comes from warehouses outside the EU for values up to €150, or when the goods are delivered from warehouses within the EU.
Collecting VAT even for EU warehouses is caused by the country where AliExpress, as a platform, is registered. They operate in Hong Kong, meaning outside the EU, so they have to collect VAT for all goods without exception.
What about packages that are marked as a gift?
Some smarter shoppers on AliExpress often used gift package labeling. That way, they avoided paying VAT for packages more expensive than €22. This made it possible to avoid the order from China becoming overpriced—except for the packages that were randomly checked. One of the EU’s moves is introducing a new customs clearance system, ICS2 (Import Control System 2).
To ensure smooth customs processing, you’ll need a detailed description of the packages and their contents. This will also apply to packages marked as a gift. The description must include an HS code (Harmonized System), which is the international standard for classifying the type of goods.
More hassle with the new reform
So the new EU reform brings a lot of extra unpleasant hassles for the end user, and the goal is clear: discourage people from shopping from China and support local businesses. Whether this is the right step, time will tell—and we’re very curious how customs offices will manage the much bigger influx of packages. Just in the last month or two, they’ve already had major problems processing customs clearance within a reasonable timeframe.
But at least AliExpress helps make VAT payment easier this way. With the new rules, we will definitely test the shipping, and we’ll also publish a detailed guide on how to handle customs clearance yourself. Just keep in mind that you’ll need an ID card with a chip, a card reader, and all the required certificates on your computer.
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Discussion (24)
“the goal is clear – to discourage shopping from China and support local businesses”
So you’re supporting resellers who buy from China anyway 😀 Because the EU no longer produces anything—it exported everything to China and now punishes purchases from China. The EU’s short-sighted mindset is fantastic.
Hello, in the article, in my opinion you have a mistake
“As we mentioned, from now on we will have to pay extra VAT additionally for products of every value. The amount of tax differs from country to country (in the Czech Republic it is 20%), To which”
VAT is 21%
Hello, thank you for your comment. The information given there was from a Slovak translation, but it’s correct now in the Czech version as well.
Hi, so just to clarify: for an item of value €10 and I pay €1 VAT to AliExpress (so total €11), will I still need to pay the €2 fee to Slovak Post? Why is this— they are not doing anything except seeing that VAT is already paid and delivering it.
Good day. I’m interested in ordering a package from China worth 250€, and the shipping cost should be 115€. I saw that VAT is already added there. The package should be delivered to me from a CZ warehouse (that’s what’s listed in the seller’s offer). But I don’t know what to do next. Should I file the customs clearance request myself, or will it just arrive to me, or how does it work? I’m completely confused. And so I won’t need to pay VAT, if the seller is calculating it? Will he then remit it to the state?
Thank you for your reply
If I understand that correctly… customs duty is paid over 150 euros. VAT is paid regardless of the price, regardless of whether I order from an EU warehouse or a Chinese one (so it’s more beneficial to order from China). When placing the order, I download the invoice, then handle customs clearance—it's more beneficial to file the customs declaration via eCeP than to have the Czech Post act on my behalf, where the fee is 200 CZK for customs clearance. Am I understanding that correctly? I read somewhere that you have to pay for eCeP, and I’m confused about it.
Hello. Yes, customs duty is paid only over 150 € and VAT always. It’s not better to order from China, because from EU warehouses the products don’t get stopped at customs. You handle customs clearance yourself only if the seller hasn’t collected the VAT for you, but all bigger shops already do that, so you don’t need to deal with this at all. You may only be faced with a €2 fee for automated customs clearance.
My experience is as follows: if the shipment is via Chinese Post, SK Post automatically charges 2€. If it’s via alternative carriers—even if SK Post delivers it—nothing is paid. So it looks like SK Post turned it into a nice little profit 🙁
Yes, that’s right. As long as your parcel is delivered by a courier company, there is no customs clearance fee.
Greetings, in a way it applies to this thread, so I’m asking here. I ordered a phone on AliExpress, under the new rules—VAT was already added at checkout. A tab appeared to download the invoice, I downloaded it, but it turned out that the recipient shown there is only an email address and address. Is it possible on AliExpress to set full company details so they appear on the invoice?
Post will charge 2€ for every package, 4€ if they need you to add some information and contact you, and 9€ if they need to contact you plus the customs officers and you have to add the information. These prices will apply starting September, as you write.
Based on the latest information, I get the feeling that Post will also charge a fee even after Ali introduced VAT. For now it’s reduced to 2€, but it should be the original (9€), so in reality it’s still a disaster.
Today my first delayed order already arrived—still from May. According to the tracking info, it was at customs here only a few days ago, so I already paid the fee for the package and for the post. So for a ~10€ package I paid 2€ to Post and 1.98€ VAT.
For my next order I also paid extra VAT on Ali, so I’m curious whether I’ll have to pay these same fees as well.
If it was from a Chinese warehouse, then you’ll only pay the €2 fee for automated customs clearance. If you ordered from an EU warehouse, you won’t have to pay anything extra and the parcel will arrive without being stopped at customs. We tested it with AliExpress and Banggood.
Nothing will probably be the same as before. At least it will be necessary to let customs know that this package has already been arranged, and that can’t be done without their form and e-signature.
There should be an automated system for this, and the packages will have to include a certain HS (Harmonized System) code. We’ll see—maybe packages under €150 will go through without being stopped at customs.
Not true about EU warehouses. Products from EU warehouses on AliExpress are still charged with VAT at checkout.
Yes, the information about EU warehouses is already updated. Please use CTRL + F5 to fetch the post again.
So from today everything works the same as before, just the price is higher by VAT? What I mean is: will Slovak Post no longer charge anything when you order from AliExpress, and will the shipment be delivered as before if I pay the VAT directly to AliExpress?
Thank you
Hello. We can’t say for sure—we need to test an AliExpress order ourselves. If it’s a product under €150, it’s possible it won’t be stopped at customs anymore, because for more expensive ones customs duty also has to be paid.
Great work, thumbs up for your lightning-fast responses. As for EU warehouses—basically they lose their point; the only advantage left is delivery speed. Most of the time the goods there are slightly more expensive, and you usually also pay shipping. So if someone really isn’t in a hurry, it’s better to order in China.
More expensive products in the EU warehouse aren’t the rule anymore. Only on AliExpress—for example, shipping from a Spanish warehouse costs around €6. Banggood has much better prices on products in the Czech/Polish/Spanish warehouse, and they primarily sell from there. We’ll see how sellers adapt on AliExpress, because with the current VAT increase (which we noticed is only 17%), it’s not worth buying from the EU anymore. :/
I tried ordering items from China and confirm that VAT is calculated automatically at payment. So here it’s great—the hassle of paying VAT for us is solved. Unfortunately, either it was just a mistake and it will be fixed later, or something else is going on, but with an order from the Polish warehouse with a seven-day delivery—i.e., an EU warehouse—the VAT is automatically added too!!!
Hello. We corrected the information about EU warehouses. On AliExpress, VAT will be paid there as well. :/