If you’re used to buying from Chinese webshops, you’ve probably already come across information about the amendment to the Customs Procedure Act, which will change the conditions for importing goods from countries that are not part of the European Union. We informed you about the changes as well here, but this time we have new information that reveals further details. Will cheap purchases from China end, or not?
We gathered the latest information directly from the Customs and Excise Duties department of the Financial Administration of the Slovak Republic.
What conditions applied so far, and when will it change?
Currently, all imported products from countries outside the European Union are exempt from customs duty if their value does not exceed €150. This applies with a few exceptions, such as alcoholic beverages, perfumes, and tobacco products.
If the shipment value is over €150, in addition to customs duty you also have to pay VAT. Imported goods with a value up to €22 are currently exempt from both customs duty and VAT. In short, currently it works like this:
shipments up to €22 – no fees
from €22 to €150 – the buyer pays VAT
over €150 – the buyer pays VAT and customs duty
But that will change already on July 1, 2021, when the new rules take effect. They were supposed to start applying already in January, but due to the coronavirus pandemic the start date was pushed back by 6 months.
New rules that will come into effect
Under the new rules for importing from so-called third countries, shoppers will be required to clear all shipments through customs, i.e. also those with a value up to €22. You’ll also have to pay VAT even on cheap products worth just a few euros. The news caught many people off guard and worried them. So will cheap purchases from AliExpress for a few cents end?
If you ever ordered something that exceeded the €22 threshold, you would receive a letter requesting proof of the actual value, along with a power of attorney that allowed Slovak Post (or another carrier) to represent you in the process of submitting a customs declaration.
But that wasn’t entirely free, so in addition to VAT you also had to pay a fee—currently €9 for post. In the end, you paid 20% VAT + a €9 fee. If you had to pay such a fee together with VAT for every order, even up to €22, it would certainly put you off buying from China.
The European Union is introducing changes to remove the current advantage for sellers from China and other non-EU countries that don’t pay taxes here. Local sellers are at a disadvantage in this respect because they have higher costs. The new rules will therefore apply to all EU countries, not just Slovakia.
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How will it work after the change?
Since we couldn’t find any concrete information anywhere about how this will work, we reached out directly to the Financial Administration of the Slovak Republic. Are cheap purchases from China coming to an end? We got the answer from pplk. Ing. Dana Michalicová from the customs duty and excise tax support center. In an email, she gave us details on how shipments will be customs-cleared from this summer.
As we mentioned above, a customs declaration will be required for all shipments. For those that do not exceed €150, a simplified customs declaration will be available. They won’t be cleared in the standard way as shipments above €150, since they are not subject to customs duty.
You’ll pay VAT already at the time of purchase
If the supplier (seller) from a third country is registered with the tax authorities in any EU Member State and has been assigned a special VAT identification number – iOSS (import one stop shop), then such a registered supplier charges VAT already at the time of purchase from the consumer.
This means that Chinese online stores can register for the purpose of paying tax in some European country (it doesn’t have to be the Slovak Republic). When you buy from such an online store, you’ll pay VAT already when paying for the order on the store’s website. Just like it works today, for example when you shop at Slovak retailers. The price will therefore already include VAT.
We assume that the biggest shopping portal, AliExpress, will be registered for VAT payment in some EU Member State, since most of the cheapest purchases happen via this portal. The average order value on AliExpress was $20–30 during the year.
We don’t have confirmation yet whether the second-largest and best-known store, Banggood, will register the same way. We’re currently communicating with them about it and we’ll definitely bring you the latest updates as soon as we get them.
From now on, the price will be shown together with VAT
However, to be able to identify such a purchase, you’ll need to file an electronic customs declaration that includes a valid iOSS number of the supplier (seller). In this case, after verifying the information in the customs declaration, the goods will be automatically released into free circulation. You will then provide the carrier with the MRN (Movement reference number).
But there will also be a requirement to complete the electronic customs declaration via a short online form. After you submit it, you’ll receive an MRN number, which you’ll forward to the carrier. Then, once they verify the status, they will deliver your shipment without additional fees because you’ve already paid the VAT with the order.
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What if the seller isn’t registered in the EU?
If the seller isn’t registered in the iOSS VAT system in any EU Member State, then VAT will be paid directly during customs clearance after the customs authorities accept the customs declaration. If you don’t want to be represented in customs clearance and you submit the customs declaration electronically, then after the submitted customs declaration is accepted for the goods purchased from an unregistered seller (as long as the goods aren’t selected for inspection), the data needed to make the payment will be sent to you via an electronic message in the IS CEP system.
For online stores that aren’t registered in the EU for VAT payment, after you fill in the online customs declaration form, there will also be an added obligation to pay VAT. Payment will be made via bank transfer to the state treasury account. Immediately after confirmation and matching of the payment, your shipment will be delivered. However, we’ll need to send the carrier the MRN identification number again so they can verify the status of the customs declaration.
The form for shipments with low value should be simple and it won’t take much time to fill out. The process is already being tested and there will also be a guide that walks you through the whole form with questions. Based on your answers and the additional information, this guide will fill in the form automatically on its own.
What will you need to complete the customs declaration when buying from an unregistered seller?
You can fill in the customs declaration yourself, or leave it to someone else—for example, the post office (a mentioned fee of €9 is charged there at the moment). The question is whether the post office won’t increase this fee from 1 July. If you want to avoid it entirely, you can fill in the customs declaration yourself.
To submit a customs declaration without granting anyone authorization to act on your behalf in customs clearance, you will need:
1. to have a qualified electronic signature (KEP), a BOK code, a KEP PIN, a card reader for chip cards, and have installed software on your computer (so-called signature components)
2. registration in the Central Electronic Folder IS CEP information system
You can already create a qualified electronic signature and register in the Central Electronic Folder IS CEP system now. You need an ID card with a chip and a card reader for this.
If you already have these things, you can create your e-signature easily by following the clear instructions on the slovensko.sk website. You’ll also find the required software, the BOK code and the KEP PIN here, which are used to log in to the system and use the e-signature.
The registration form for the Central Electronic File information system (IS CEP) is available below on this page.
The Financial Administration of the Slovak Republic issued on 28.4.2021 a press release in which it informs about the preparation of a new portal for submitting customs declarations for shipments with a low value. If you register in the Central Electronic File (IS CEP) system now, your account will be automatically migrated to the new portal, where you won’t have to register anymore.
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What will stay the same?
Don’t forget about European warehouses, which have been gaining popularity lately. From there, delivery will always be without any additional obligations or fees. Be sure to also read our article on how to search for products from European warehouses on AliExpress.
Since items in EU warehouses are already located in Europe, from where they’ll be shipped to you, the new changes from 1.7.2021don’t apply to them. Goods you order from any European warehouse from any seller will always be delivered without any additional fees or formalities. You won’t need to file a customs declaration or pay VAT.
There will also still be the popular EU Priority Line shipping, which guarantees delivery without fees. This shipping method is offered mainly by the Banggood e-shop. The same delivery method remains valid as well, without any changes. After all, shipments sent this way are cleared by the seller for you already now—something you may not have known.
That’s why you may see in your package tracking that these shipments first go to Germany, the Netherlands, or another European country, and then they’re sent to Slovakia without a fee. No worries—you can keep ordering phones, cameras, or any products from Chinese warehouses if you choose EU Priority Line shipping. Even after 1.7.2021 it will still be without fees or any additional bureaucracy.
So what will cheap purchases from China look like after 1.7.2021?
Some changes will come, but it will still be possible to buy relatively cheap from AliExpress and similar sites. If you order, for example, a protective glass for a smartphone display and a case or cover, you’ll pay, in addition to the current price, VAT at 20%. However, for cheap products for a few euros, it won’t mean a significant price increase.
However, you’ll have the obligation to fill out a customs declaration—which should be simple and quick. It will of course be easier with sellers who register in Europe. We estimate that large e-shops like AliExpress will be registered, since a large part of their customers comes from Europe.
Cheap purchases from China definitely won’t end, and you’ll continue to be able to order various products at better prices than here. Once the new terms come into force, we’ll test the whole process of filling out the customs declaration and share our experience in an article on our website. We’ll prepare a detailed guide so you can handle such a declaration too.
Make sure you join our Facebook group, where we regularly share our experiences with shopping from China, test new sellers, and bring you the latest discount coupons—so you can save a lot.
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Good day, I had ordered goods from China worth 3.56€, and I had to pay “customs duty (clo)” worth 2.4€. It all seems rather suspicious, because under 22€ neither VAT (DPH) nor customs duty is paid. Who made the mistake—Financial Administration or the Post?
Hello, my case… I received a notice from the post office about customs proceedings. I had to provide an account statement showing how much my shipment cost. Even though the Chinese seller wrote on the package that the item is for 11 euros, customs or the post office estimated it higher—and they were right. It ended up being 37 euros; they’re not idiots. I wanted to pay only the VAT myself via the Financial Administration website… but in any case I would still have to pay the post office 4 euros. So it’s 4 euros if I do it myself, 9 euros if the post office does it for me. Meaning it got increased big time. The shipment has been at the post office for 15 or 18 days. After that, you pay 0.50 euros for each additional day for storage. I don’t know until when the package can be stored there.
Hello, I’d like to ask: if I already have a shipment from China in “Duisburg-Linehaul ”, i.e. already in the Netherlands (NL), and it arrives in Slovakia in practice after 01.07, will customs duty/VAT still have to be paid anyway? Or will these shipments be treated as having arrived from NL, and therefore customs duty/VAT won’t apply to them anymore? Thank you 🙂
Hello. The crucial factor is the date the shipment arrives at the Slovak customs office. It’s still a parcel from China, so the fact that it passes through the Netherlands won’t help—you can’t change where the package is coming from; they see where it originates.
Will I need to cancel the power of attorney I gave to Czech Post so it can represent me in customs proceedings, or will it be voided on 1.7.2021, when the new rules take effect?
Pretty much everyone gave Czech Post power of attorney so packages from China could be delivered to them. It’s written about everywhere, but I haven’t yet come across any mention that the “power of attorney” needs to be canceled, otherwise Czech Post will keep representing me.
So today the Czech customs authority published more detailed information. Just like in Slovakia, it will be possible to complete customs clearance online yourself via a web application. At first glance it looks rather complicated. Or it will be possible to clear it via the post office too, but for a fee of 97–150 CZK. So here the choice is clear—the app makes it certain. What I don’t understand yet is whether there will be any storage fees during the customs clearance process and also for further transport to the recipient—based on the information above, it’s not clear.
Let me add one detail: the fact that charging (VAT + customs duty) will start in July isn’t because of the pandemic. The law was approved and agreed on before the pandemic even began, with validity from 1.1.2021 and then implemented in practice from 1.7.2021. I’m curious how all of this will work. I don’t have a problem paying customs duty and taxes, but I’m worried about the processing/delivery time. Since customs offices are already “sitting” relatively long on our parcels due to the huge volume of shipments, how will they handle it from July? I have experience clearing goods from the USA, and it was a nightmare in terms of communication with customs and processing speed. So hopefully I’ll be pleasantly surprised with the new setup.
Let me tweak this a bit. Slovak Post charges 9€. It consists of a fee of 4.5 for handling customs proceedings and 4.5 for storing the shipment during customs proceedings. So if in the future someone wants to do the customs clearance themselves, I assume they will still have to pay at least those 4.5 for storage if the fee doesn’t increase.
So far, they should already have warehouses in France, Spain, and the Czech Republic, but I haven’t been lucky enough for them to send it to Slovakia from there. Everything I looked for they didn’t have/didn’t want to ship to Slovakia, so it was basically useless to me. My experience was with shipments from Poland or Germany. I don’t have a lot of experience with shipping from EU warehouses, but so far on all the scooters (“rakosnik”) they listed the wrong phone number, so the courier couldn’t reach me. So at least one bit of luck: I tracked the package regularly, handled everything myself, and arranged it with the courier company.
So those early days will be, in my opinion, a real birth—especially at the start!
I have a question. Will AliExpress be registered in the EU, and as a VAT payer it will cover all sellers under its portal, or does each seller have to register themselves? Then how will I know that I’m buying from someone who already pays VAT? Of course, I’m praising it otherwise—an exhaustive article that fills me with optimism that some products will still be cheaper to buy in China than the overpriced ones here. However, only on the condition that Czech authorities will act the same way as Slovak ones and introduce online forms for clearance. I’m more afraid though that it will be a small “back door” (loophole) in the form of a fee for our post office, and we’ll just be jealous of Slovakia 🙂
Hello, in the Czech Republic and across the entire EU it should work the same; the system will most likely be unified, because this is an EU-wide regulation. As for AliExpress, it’s still not exactly known how it will work—we’ll find out only after 1 July 2021. In any case, our understanding is that AliExpress, as the marketplace, will register in the EU for VAT collection, and then each customer will buy each product with VAT—of course, VAT will have to be stated for every single product. So it doesn’t depend on the seller. We’ll be testing orders from China under this new law and we’ll definitely bring detailed experiences and instructions on how to do it.
Hello and thank you for the great article. If the bureaucrats in the EU think they can deter people from buying from China, they’re wrong. I can’t wait to read your experience with shopping after 1 July 2021. You’re an awesome site. Wishing you all the best!
Nonsense—only people are making it up; the state probably obviously doesn’t have money. They’re thinking about ways to pull it out now—they’ll charge for this, and then what?
Anyway, it will still be free, even if you order, for example, a phone for 100 EUR or more right now—you just need to ask the seller to send it to you as a gift, and in that case nothing will be charged, nothing will be paid, because it’s a “gift” 😉
Discussion (13)
Good day, I had ordered goods from China worth 3.56€, and I had to pay “customs duty (clo)” worth 2.4€. It all seems rather suspicious, because under 22€ neither VAT (DPH) nor customs duty is paid. Who made the mistake—Financial Administration or the Post?
Hello, my case… I received a notice from the post office about customs proceedings. I had to provide an account statement showing how much my shipment cost. Even though the Chinese seller wrote on the package that the item is for 11 euros, customs or the post office estimated it higher—and they were right. It ended up being 37 euros; they’re not idiots. I wanted to pay only the VAT myself via the Financial Administration website… but in any case I would still have to pay the post office 4 euros. So it’s 4 euros if I do it myself, 9 euros if the post office does it for me. Meaning it got increased big time. The shipment has been at the post office for 15 or 18 days. After that, you pay 0.50 euros for each additional day for storage. I don’t know until when the package can be stored there.
Hello, I’d like to ask: if I already have a shipment from China in “Duisburg-Linehaul ”, i.e. already in the Netherlands (NL), and it arrives in Slovakia in practice after 01.07, will customs duty/VAT still have to be paid anyway? Or will these shipments be treated as having arrived from NL, and therefore customs duty/VAT won’t apply to them anymore? Thank you 🙂
Hello. The crucial factor is the date the shipment arrives at the Slovak customs office. It’s still a parcel from China, so the fact that it passes through the Netherlands won’t help—you can’t change where the package is coming from; they see where it originates.
Will I need to cancel the power of attorney I gave to Czech Post so it can represent me in customs proceedings, or will it be voided on 1.7.2021, when the new rules take effect?
Pretty much everyone gave Czech Post power of attorney so packages from China could be delivered to them. It’s written about everywhere, but I haven’t yet come across any mention that the “power of attorney” needs to be canceled, otherwise Czech Post will keep representing me.
So today the Czech customs authority published more detailed information. Just like in Slovakia, it will be possible to complete customs clearance online yourself via a web application. At first glance it looks rather complicated. Or it will be possible to clear it via the post office too, but for a fee of 97–150 CZK. So here the choice is clear—the app makes it certain. What I don’t understand yet is whether there will be any storage fees during the customs clearance process and also for further transport to the recipient—based on the information above, it’s not clear.
Let me add one detail: the fact that charging (VAT + customs duty) will start in July isn’t because of the pandemic. The law was approved and agreed on before the pandemic even began, with validity from 1.1.2021 and then implemented in practice from 1.7.2021. I’m curious how all of this will work. I don’t have a problem paying customs duty and taxes, but I’m worried about the processing/delivery time. Since customs offices are already “sitting” relatively long on our parcels due to the huge volume of shipments, how will they handle it from July? I have experience clearing goods from the USA, and it was a nightmare in terms of communication with customs and processing speed. So hopefully I’ll be pleasantly surprised with the new setup.
Let me tweak this a bit. Slovak Post charges 9€. It consists of a fee of 4.5 for handling customs proceedings and 4.5 for storing the shipment during customs proceedings. So if in the future someone wants to do the customs clearance themselves, I assume they will still have to pay at least those 4.5 for storage if the fee doesn’t increase.
So far, they should already have warehouses in France, Spain, and the Czech Republic, but I haven’t been lucky enough for them to send it to Slovakia from there. Everything I looked for they didn’t have/didn’t want to ship to Slovakia, so it was basically useless to me. My experience was with shipments from Poland or Germany. I don’t have a lot of experience with shipping from EU warehouses, but so far on all the scooters (“rakosnik”) they listed the wrong phone number, so the courier couldn’t reach me. So at least one bit of luck: I tracked the package regularly, handled everything myself, and arranged it with the courier company.
So those early days will be, in my opinion, a real birth—especially at the start!
I have a question. Will AliExpress be registered in the EU, and as a VAT payer it will cover all sellers under its portal, or does each seller have to register themselves? Then how will I know that I’m buying from someone who already pays VAT? Of course, I’m praising it otherwise—an exhaustive article that fills me with optimism that some products will still be cheaper to buy in China than the overpriced ones here. However, only on the condition that Czech authorities will act the same way as Slovak ones and introduce online forms for clearance. I’m more afraid though that it will be a small “back door” (loophole) in the form of a fee for our post office, and we’ll just be jealous of Slovakia 🙂
Hello, in the Czech Republic and across the entire EU it should work the same; the system will most likely be unified, because this is an EU-wide regulation. As for AliExpress, it’s still not exactly known how it will work—we’ll find out only after 1 July 2021. In any case, our understanding is that AliExpress, as the marketplace, will register in the EU for VAT collection, and then each customer will buy each product with VAT—of course, VAT will have to be stated for every single product. So it doesn’t depend on the seller. We’ll be testing orders from China under this new law and we’ll definitely bring detailed experiences and instructions on how to do it.
Hello and thank you for the great article. If the bureaucrats in the EU think they can deter people from buying from China, they’re wrong. I can’t wait to read your experience with shopping after 1 July 2021. You’re an awesome site. Wishing you all the best!
Thanks for the compliment—such a comment really makes us happy. 🙂
Nonsense—only people are making it up; the state probably obviously doesn’t have money. They’re thinking about ways to pull it out now—they’ll charge for this, and then what?
Anyway, it will still be free, even if you order, for example, a phone for 100 EUR or more right now—you just need to ask the seller to send it to you as a gift, and in that case nothing will be charged, nothing will be paid, because it’s a “gift” 😉