EU July 2021 ending €22 import VAT exemption

[RolETA2824]

A Cartel 6263 from a M2M sale


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[grillbrill]

I have an experience in the process of the Hungarian post with a low value (USD 3) product (plug adapter) ordered from China. The content of the package was exactly declared by the seller. In Hungary the package got a small orange yellow label "Payment on delivery" (sorry if my Hungarian -> English translation is not correct) and on delivery I had to pay EUR 2 to the postman without any hassle.

 

[Davne25]

Hey guys i was reading this thread the whole morning and i want to contribute something too.

I recently ordered some lume color from switzerland and it was declared as „organic color compounds“ valued at 94CHF (~88€). The parcel got delivered within a week and i had to pick it up at my local DHL Store. They carged 19% import taxes and 6€ handling costs but the parcel wasn’t opened by customs. This was all after 1st July.

I have done some reading about this topic and it looks like the tax-free barrier didnt got eliminated completely but rather set down to 1€ of import taxes value. So theoretical speaking we should be able to declare anything less 5,26€ because in this case the 19% taxes will be below 1€. I hope this is understandable…

Now there is also the way to declare a parcel as a Gift. This way you can only send from privat to privat adress and you also have to declare a specific content, but the the parcel will be tax free is the value is below 45€, this is still the case after 1st of July. If this does work or not i can’t certainly confirm at the moment. Maybe someone else has ever tried such a gift-declaration in m2m sales before.

I would always try to declare the lowest possible value, if it makes sense or not, we dont know but if the parcel is opened with a rep watch in it, it makes no difference if you wrote 1$ or 60$ „watchcase and parts“ or something,- in my opinion…

Let me know your thoughts!
(if any of you want the sources for all of this just shoot me a PM)

 

[JayBee0815]

I would always try to declare the lowest possible value, if it makes sense or not, we dont know but if the parcel is opened with a rep watch in it, it makes no difference if you wrote 1$ or 60$ „watchcase and parts“ or something,- in my opinion…

Correct. The interesting question is how probable it is, that the customs open a package with 1$ declared value and how probable it is, that the customs open a package with 60$ declared value. Nobody knows it yet.

 

[Davne25]

JayBee0815 yeah that’s true of course we don’t know.
My thoughts on this are, that all parcels are sorted by scans and machines and only very few get sorted by hand and opend randomly. Maybe they are coming from a trustful point of view and think if we declare 1$ it is one dollar and so they let it through more often. But i could be wrong with this of course.


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[grillbrill]

...

Now there is also the way to declare a parcel as a Gift. This way you can only send from privat to privat adress and you also have to declare a specific content, but the the parcel will be tax free is the value is below 45€, this is still the case after 1st of July. If this does work or not i can’t certainly confirm at the moment. Maybe someone else has ever tried such a gift-declaration in m2m sales before.

...

Thanks for the heads up. I read the same in Hungary. I'll inform my two TD's about it. Would be great if they could send me my two ordered watches P2P declared as gifts of < 45€.

 

[Davne25]

@grillbill your welcome, but again be careful, i dont have any information if this is working well or not, technically it could work but you still have to declare the content and stuff. Maybe some other members have done this before and can share some experience on this, since sending as a gift has always been like this

 

[thenut]

I suppose: the risk with a 4 Dollar declaration to get seized is a Lot Higher than with a 60 Dollar declaration. 20 Euro of Tax and Service Fees, who Cares.

 

[grillbrill]

I suppose: the risk with a 4 Dollar declaration to get seized is a Lot Higher than with a 60 Dollar declaration. 20 Euro of Tax and Service Fees, who Cares.

Yes, imo declaring < USD 10 for a watch (part) may not be realistic for a customs officer. I hope a 20-40 EUR declaration for a (say toy) watch may not catch customs' eyes. Another question if they ask for a proof of payment.

 

[c.dimitri]

Yes, I totally agree.

Regarding proof of payment, maybe my solution with Sead, I did the other day, ... ask your TD if it‘s possible to split your payment in two transactions. One for „watch parts“ and the 2nd one for the rest (final payment).

 

[P..DR..D]

Just wanna say thanks to Davne25 & c.dimitri.

Shall definitely be contacting my TD to discuss the best way forward (maybe a combo of both your ideas) and see what their thoughts are (am sure they have a plan, I hope) so your contribution to this thread is very much appreciated.

Here's to keeping a steady, uninterrupted, supply of shiny toys for our lovely wrists :thumbsup:

 

[papa.en.velo]

I picked up two watches at the post office today in Germany. They came through Hongkong with 4PX. First I was worried because the tracking was updated that it couldn’t be delivered yesterday.
Strange, because I was home all day and there was no card where to pick it up. Spend some time on the DHL Hotline and they told me where to pick it up.
Had to pay 7,24€ for „Two fashion bracelets“ declared with 8$.
However, today I got mail from DHL with the card where to pick it up. Due to COVID, they directly send packages where you have to pay to a pick up location (contactless payment, more secure for employees). So keep calm and wait where to go, this will probably become the new normal ;-)

 

[gigi77]

Indipendently from our rep, isn't it crazy that we end up apying 50-80% of the value for low valure items imported to EU? Like a 5$ cable with 3$ taxes?

 

[papa.en.velo]

I think that is not completely correct. In Germany you only pay 19% VAT. What makes it expensive is the fee (6€) from DHL because they pay the customs if not paid in advance from the sender and charge you for that service.
This CAN be avoided I guess, but TDs probably won’t do that because it’s too country-specific.

 

[Davne25]

This can indeed be avoided, i dont how other countries handle it, but for our fellow german members: we can make some account on the DHL website and get notification from incoming parcels or you can place the tracking yourself. Befor that you can connect your paypal, mastercard or visa i guess and pay the 19%VAT right when the parcel enters Germany. This way DHL don’t has to pay for us so we wont be charged with those 6€ fee. I can’t remember where I’ve read it but i will search the source and post it.


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[papa.en.velo]

You are correct. But you can only do so for DHL Express! Not for standard DHL.

 

[Davne25]

Ah okay, thats the point


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[c.dimitri]

Just received a movement from China. VAT paid to the online shop. Arrived as „prepaid“. Nothing to pay on the top and it wasn’t opened.

 

[P..DR..D]

Just received a movement from China. VAT paid to the online shop. Arrived as „prepaid“. Nothing to pay on the top and it wasn’t opened.

Good news, thanks for the update Sir.

Just waiting to hear back from my TD to arrange 'something'

 

[c.dimitri]

Good news, thanks for the update Sir.

Just waiting to hear back from my TD to arrange 'something'

„Fortune follows those who gently rub their watches with their fingertips.“ ;-))